Kenia, the CFO of an organization, is looking to raise capital. She is concerned because she knows that if she issues new debt, the debtholders will demand a higher interest rate to compensate for the increased risk. Which of the following scenarios will persuade Kenia to issue new debt?

A. The cost of the new bond is 11%, and the cost of the new capital is 9%.

B. The organization expects a decreased tax rate this year.

C. The organization expects a higher tax rate this year.

D. The CEO of the organization has approved the issuance of new debt.