Issuing Bonds is a common and popular source of financing the company's cash needs because:

• A. bond interest expense is deductible for tax purposes, while dividends paid to stockholders are not deductible
• B. financial analysts often downgrade a company's credit rating when it has raised large amounts of cash by frequently issuing stock
• C. a company having cash flow problems can postpone interest payments to bondholders
• D. the bondholders can always convert their bonds into common stock if they choose