Which of the Following Is a Major Disadvantage to the Firm

Which of the following is a major disadvantage to the firm of preference share capital?

A) Tax is not payable on the firm's profit before the deduction of the preference dividend.
B) The cost to the company is lower than is available through bond issues.
C) The higher risk causes preference shareholders to demand a higher level of return than debt holders.
D) There are limits to safe levels of borrowing.