Which one of the following statements about preferred stocks is true? 1. Unlike dividends paid on common stock dividends paid on preferred stock are a tax deductible expense 2. If preferred dividends are non cumulative then preferred dividends not paid in a particular year will be carried forward to the next year 3. Dividends on preferred stock payable during the next twelve months are considered to be corporate liability 4. There is no significant difference in the voting rights granted to preferred and common shareholders 5. Preferred stock usually has a stated liquidating value of $100 per share