Which of the following statements regarding the taxation of corporate profits is true?

Multiple Choice

a-Corporations with high debt-to-equity ratios have less burdensome cash flow commitments and lower risk of insolvency.

b-Dividends payments are deductible in computing corporate taxable income.

c-The tax treatment of corporate dividends creates a bias in favor of debt financing.

d-Corporations cannot deduct interest payments in computing corporate taxable income.