Which one of the following statements is correct? 0 1) From a legal perspective, preferred stock is a form of corporate debt. O 2) Dividends are tax-free income for individual investors. 0 3) Shareholders prefer noncumulative dividends over cumulative dividends. 04) All classes of stock must have equal voting rights per share. O 5) Common shareholders elect the corporate directors while the preferred shareholders generally do not have voting rights