Which of the Following Statements Is Correct

Multiple Choice

Which of the following statements is correct?

A) In countries where there are no taxes, corporations should use debt.
B) In countries where capital gains are taxed, investors should prefer to own stocks rather than bonds.
C) In countries where capital gains are not taxed, equity capital costs should be high.
D) In countries where dividends are not taxed, the investors should prefer to own bonds rather than stocks.
E) In countries where capital gains are not taxed, investors should prefer to own stocks rather than bonds.