Blue Spruce Corp. has 15000 shares of 4%, $100 par value, cumulative preferred stock and 150000 shares of $1 par value common stock outstanding at December 31, 2020. If the board of directors declares a $37500 dividend, the

preferred stockholders will receive 1/10th of what the common stockholders will receive.

preferred stockholders will receive the entire $37500.

$37500 will be held as restricted retained earnings and paid out at some future date.

preferred stockholders will receive $20000 and the common stockholders will receive $20000.