Which of the following statements is CORRECT?

a. Preferred dividends are not generally cumulative.

b. A big advantage of preferred stock is that dividends on preferred stocks are tax deductible by the issuing corporation.

c. Preferred stockholders have a priority over bondholders in the event of bankruptcy to the income, but not to the proceeds in a liquidation.

d. The preferred stock of a given firm is generally less risky to investors than the same firm's common stock. e. Corporations cannot buy the preferred stocks of other corporations.