problem: Determine the correct statement?

[A]      Preferred stock is normally expected to provide steadier, more reliable income to investors than the same firm’s common stock, and, as a result, the expected after-tax yield on the preferred is lower than the after-tax expected return on the common stock.

[B]       The preemptive right is a provision in all corporate charters that gives preferred stockholders the right to purchase [on a pro rata basis] new issues of preferred stock.

[C]      One of the advantages to financing with preferred stock is that 70% of the dividends paid out are tax deductible to the issuer.

[D]      A major disadvantage of financing with preferred stock is that preferred stockholders typically have supernormal voting rights.

[E]     One of the disadvantages to a corporation of owning preferred stock is that 70 percent of the dividends received represent taxable income to the corporate recipient, whereas interest income earned on bonds would be tax free.