XYZ is a corporation. It needs to raise some capital and is uncertain whether to issue debt or equity. Which of the following statements is true?

a. Both interest payments and dividend payments are deductible as expenses

b. Interest payments are deductible but dividend payments are not deductible as expenses

c. Principal repayment and stock retirement are deductible expenses

d. ‘The shareholders (noncorporate and corporate) are indifferent as to whether they receive interest or dividends

e. All of the above are true

f. None of the above are true