Preferred Stock Has Both a Tax Advantage and a Tax

Preferred stock has both a tax advantage and a tax disadvantage. These two are:

A) in default there are no taxes and dividends are taxed in corporate hands at 70%.
B) corporate dividends are taxed on 30% of the dividends received and expenses are deductible.
C) dividends are not a tax-deductible expense but are 70% exempt from corporate taxation.
D) dividends are fully tax deductible but are not equity capital.
E) None of these.