Which of the Following Is a Reason Why Personal Taxes

Which of the following is a reason why personal taxes tend to favour the use of equity in a firm's capital structure?

A) Large portion of the returns on equity are taxed at a rate lower than ordinary tax rates.
B) Dividend payments are not tax deductible for equity holders,and are taxed at the capital gains rate.
C) Interest income is not tax deductible at the ordinary tax rate which is generally more favourable.
D) Interest income is tax deductible and leads firms to favour debt over equity financing.