Which one of the following statements is correct?

Shareholders prefer noncumulative dividends over cumulative dividends.

Common shareholders elect the corporate directors while the preferred

shareholders generally do not have voting rights.

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

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

Dividends are tax$-$free income for individual investors.

An investor purchased a stock for $$42\mathrm{.}86$ and sold it one year later for $$49\mathrm{.}18.$ The

investor also received a dividend payment of $$1\mathrm{.}22.$ What was the investor's

realized capital gain rate? $($Enter your answer as a decimal rounded to $4$ decimal

places, not a percentage. For example, enter $\mathrm{.}0153$ instead of $1\mathrm{.}53\%.)$