When calculating the cost of capital, why is the tax rate factored into the cost of debt, but not the cost of common or preferred stock? Select one: O a. interest payments on bonds are taxable to investors, but dividends paid on stocks are not O b. interest paid on debt is tax-deductible to the issuer c. only companies that issue common stock pay taxes Od none of the other answers are correct e dividends paid on common and preferred stock are tax deductible to the Issuer