5. Which statement is correct about common and preferred stocks? (A) Preferred dividends are dividends issued by profitable firms that are preferred by most investors. (B) If a firm skips its preferred dividends more than three times, the firm is legally bankrupt. (C) Preferred dividends are cumulative; common dividends can be skipped and they are not cumulative. (D) Firms can choose to pay common dividends before the due preferred dividends are completely paid