Question 1 1 pts Which of the following statements is correct? All the answers are correct. Preferred stock, for valuation purposes, can be viewed as a special case of the bonds, with the growth rate of dividends equal to a positive rate. The only difference between retained earnings (internally generated common equity) and new common equity is that the firm must pay flotation costs on the sale of new common equity. Because dividends are tax-deductible expense for firms, dividend payments actually cost the firm less than the full amount of the payment. In addition to forming the underwriting syndicate to buy the securities, the Securities and Exchange Commission (SEC) also functions as a consultant to the firm and advises the firm on the pricing of the issue and is responsible for preparing the registration statement for the investment bank