Classic Cars Corp. has50,000 shares of$10 par common stock and20,000 shares of$15 par fully participating10% cumulative preferred stock. If the company declares cash dividends of$100,000 during the current year and there are no dividends inarrears, what will be the total dividend payment to preferredshareholders? A. $42,500 B. $57,500 C. $37,500Your answer is correct. D. $62,500