regarding the tax treatment of payments to securities holders, it is true that _____.

1. common stock dividends and preferred stock dividends are not tax deductible, while interest is tax deductible

2. interest and preferred stock dividends are tax deductible, while common stock dividends are not tax deductible

3. interest and preferred stock dividends are not tax deductible, while common stock dividends are tax deductible

4. common stock dividends and preferred stock dividends are tax- deductible, while interest is not tax - deductible