The'conflict of Preferences' Occurs Because

The'conflict of preferences' occurs because:

A) Preference shares do not carry a sufficiently high dividend, given their risk.
B) Primary investors want a completely risk- free investment with high returns and borrowing firms offer only high risk/low returns as their securities.
C) Primary investors want low- cost liquidity and certainty, and the ultimate borrowers want long- term risk- bearing capital.
D) Customers of firms have different needs to those assumed by suppliers.