Which one of the following statements is correct?

Question 9 options:

1)	Common shareholders elect the corporate directors while the preferred shareholders generally do not have voting rights.

2)	From a legal perspective, preferred stock is a form of corporate debt.

3)	Shareholders prefer noncumulative dividends over cumulative dividends.

4)	All classes of stock must have equal voting rights per share.

5)	Dividends are tax-free income for individual investors.