Question $7($Mandatory$)(0\mathrm{.}3$ points$)$

Regarding the tax treatment of payments to securities holders, it is true that $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_,$ while $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.$

Question $7$ options:

$1)$ interest and preferred stock dividends are tax$-$deductible; while common stock dividends are not tax$-$deductible

$2)$ common stock dividends and preferred stock dividends are tax$-$deductible; while interest is not tax$-$deductible

$3)$ interest and preferred stock dividends are not tax$-$deductible; while common stock dividends are tax$-$deductible

$4)$ common stock dividends and preferred stock dividends are not tax$-$deductible; while interest is tax$-$deductible