1. Celestila Moonn, a GLBAAF 301 student at UMB, made the following statements regarding preferred stock and capital gain:

   Statement 11: A long-term investor in a high marginal tax bracket will normally prefer a dollar of capital gain to a dollar of dividend yield.

   Statement 12: Preferred stockholders have a claim senior to common stock but junior to bondholders.

   Is Moon correct with respect to statements 11 and 12?

   	A.	Yes, both statements 11 and 12 are correct.
   	B.	No, both statements 11 and 12 are incorrect.
   	C.	Yes, for statement 12 and no for statement 11.