Why Do Companies Tend to Issue Preferred Stock Less Then

Multiple Choice

Why do companies tend to issue preferred stock less then commons stock and bonds?

A) Flotation cost of preferred stock is low compared to bonds.
B) Preferred dividends are considered regular (fixed) obligations but are not tax-deductible.
C) Preferred shareholders are entitled to receive stipulated dividends before common shareholders.
D) Preferred stock typically has cumulative dividends.