Which of the following statements is true regarding the payment of dividends to preferred shareholders?

a$.$ Payments to debtholders are paid before dividends are paid to preferred shareholders.

b$.$ Dividends to preferred shareholders are a tax$-$deductible expense to the issuing company.

c$.$ Dividends to preferred shareholders are paid before payments are made to debtholders.

d$.$ Dividends to preferred shareholders are paid after dividends are paid to common shareholders.