Which of the following is true regarding preferred stock, common stock & debt?

A- Preferred stock pays a dividend that is a tax-deductible expense to the company. Common stock dividends are not tax deductible. Preferred stockholders have voting rights.

B-Preferred shareholders have a higher claim on the firm's earnings than do bondholders. Preferred dividends are a contractual obligation of the firm. Common shareholders have voting rights.

C- Dividends on common stock are perpetual. If a firm stops paying common dividends, it must repay shareholders those dividends it missed. Interest on debt is at the discretion of management and can be stopped or suspended if the firm has financial difficulty.

D-Preferred and common stock are perpetual - meaning that they have infinite maturities. Preferred & common dividends are not contractual obligations of the firm and are not tax-deductible expenses. Preferred dividends, while not contractual, are much more stable than common dividends and are often considered to be like perpetual debt.