Which statement correctly contrasts debt financing with equity financing?

1. Interest on debt is a tax-deductible expense. 2. Dividends to owners are not tax-deductible and are paid from after-tax income. 3. That difference is a large part of why equity is more costly than debt. 4. On claims, debt holders rank ahead of equity holders, and payment of interest and principal is a contractual obligation, so the first option reverses the order. 5. On maturity, debt has a stated date and requires repayment of principal, while the company is not required to repay equity at all, so the second option is backwards. 6. On control, common stockholders hold the voting rights while creditors typically have none unless the borrower defaults, so the fourth option inverts that too. _Source: OpenStax Introduction to Business (CC BY 4.0), Ch 16 "Understanding Financial Management and Securities Markets", section 16.4 Raising Long-Term Financing_