A French MNC needs to raise equity for an impending investment. It can issue common shares that pay taxable dividends and bearer shares that pay the same dividend. The tax rate on taxable dividends is 11%. In addition, the MNC incurs a cost of 3% of the proceeds to issue common shares. The issuance costs of bearer shares is 14% of the proceeds. Based on this information, we can infer that:

a.

The MNC will prefer to issue only bearer shares.

b.

The MNC will prefer to issue only common shares.

c.

Investors are indifferent and the MNC can issue either common or bearer shares.

d.

There is not enough information to infer anything.