Use the following three statements to answer this question: 1. Dividends are the legal obligation of the firm. 2. A firm's residual earnings technically belong to the preferred shareholders 3. The market prices of preferred shares increase when market rates decline, and vice versa. O a only 3 is correct Ob.only 2 is correct O c. only 1 is correct Od 1 and 3 are correct O e 2 and 3 are correct