5. Which of the following is FALSE regarding the differences between debt and common stock?

A) Interest payments are legally binding while dividend payments generally are not.

B) A company with excess debt may go bankrupt, but an all-equity firm cannot.

C) Equity is ownership in a firm but debt is not.

D) Stockholders have voting power while creditors do not.

E) Periodic payments made to either class of security are tax deductible for the issuer.