In what respects is preferred stock similar to debt and in what respects is it similar to common stock? (pick one of the responses below)

a. Preferred stock and debt both have fixed payment rates. A payment on preferred stock is called a dividend while the payment on debt is called interest

b. While interest is a legal obligation on the periodic payment date, dividends on preferred and common stock are not an obligation of the company until declared by the board of directors

c. Interest is an expense and reduces net income while preferred and common dividends do not reduce net income

d. All of the above