4. The following is the shareholders' equity section of Sabrina Inc. at December 31, 2013: Preferred shares, $5 dividend, 5,000 outstanding Common shares (5,000 outstanding) $250,000 150,000 Assume that $85,000 is available for dividend distribution this year. Preferred shares dividends were not paid last year. What amount of dividends is paid to the preferred shareholders this year assuming they are cumulative and participating. a. $50,000 b. $22,500 c. $62,500 d. $85,000 5.Stock options are "in the money" when: a) Exercise Price on the options exceed the current market price of the stock b) Exercise Price on the options are less than the current market price of the stock c) They are Anti-Dilutive d) The stock options expire