Which one of the following statements is CORRECT? A Since companies can deduct dividends paid but not interest paid, our tax system favors the use of equity financing over debt financing, and this causes companies’ debt ratios to be lower than they would be if interest and dividends were both deductible. B Interest paid to an individual is counted as income for federal tax purposes and taxed at the individual’s regular tax rate, which in 2008 could go up to 35%, but dividends received were taxed at a maximum rate of 15%. C The maximum federal tax rate on corporate income in 2008 was 50%. D The maximum federal tax rate on personal income in 2008 was 50%.