Which of the following is not a risk to a company issuing preferred stock instead of bonds to raise equity?

a. The company could be forced into bankruptcy by not paying preferred dividends to shareholders.

b. If the company does not pay preferred dividends, investors are not likely to buy new bond issues.

c. Investors will be reluctant to buy any new common or preferred shares of stock except at rock-bottom prices.

d. The company may have difficulty obtaining financing because of the negative image of not paying preferred dividends