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Business, 17.12.2019 22:31 Jayschannelutube

Bonds are a popular source of financing because

a.
bond interest expense is deductible for tax purposes, while dividends paid on stock are not.

b.
financial analysts tend to downgrade a company that has raised large amounts of cash by frequent issues of stock.

c.
a company having cash flow problems can postpone payment of interest to bondholders.

d.
the bondholders can always convert their bonds into stock if they choose.

e.
none of the above

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Bonds are a popular source of financing because

a.
bond interest expense is deduc...
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