Which of the Following Is Incorrect

Which of the following is incorrect?

A) From the perspective of the company issuing securities, debt financing is a lower cost of financing because interest is deductible and dividends are not.
B) A dollar of income from debt is less risky than a dollar of income from equity for a given company because creditors have a claim to income and assets prior to shareholders.
C) From the perspective of the corporate investor, bonds are preferred to stocks because the interest income is at most partially taxable, whereas dividend income is taxed fully.
D) From the perspective of the individual investor, a dollar of income from dividends is preferred to a dollar of income from bonds for tax purposes because dividends are taxed at a lower rate than interest income.