Which of the Following Is a True Statement

Multiple Choice

Which of the following is a true statement?

A) A corporation generally obtains equity capital from bondholders.
B) A corporation must issue either preferred stock or common stock but not both.
C) When a corporation is experiencing financial problems, an investor should purchase common rather than preferred stock.
D) Most corporations sell options to satisfy a large part of their financing needs.
E) A stock split may not cause a stock's value to increase.