Choose the statement that correctly summarizes the tax advantage of raising money by issuing bonds instead of common stock:
a) Interest payments on bonds are tax-deductible expenses, reducing taxable income for the issuing company.
b) Dividend payments on common stock are tax-deductible expenses, reducing taxable income for the issuing company.
c) Bondholders receive tax credits on their investments, reducing the tax burden for the issuing company.
d) Stockholders receive tax credits on their investments, reducing the tax burden for the issuing company.