A company has outstanding 12.00 million shares of $5.00 par common stock and 2.4 million shares of $5.40 par preferred stock. The preferred stock has an 12% dividend rate. The company declares $440,000 in total dividends for the year. Which of the following is correct if the preferred stockholders only have a current dividend preference?

A) Preferred stockholders will receive the entire $440,000, and they must also be paid $208,000 before the end of the current accounting period. Common stockholders will receive nothing.

B) Preferred stockholders will receive the entire $440,000, and they must also be paid $208,000 sometime in the future before common stockholders will receive anything.

C) Preferred stockholders will receive the entire $440,000, but will receive nothing more relating to this dividend declaration. Common stockholders will receive nothing.

D) Preferred stockholders will receive $52,800 or 12% of the total dividends. Common stockholders will receive the remaining $387,200.