Fredrick Corporation has 1,000 shares of $100 par value preferred stock outstanding with a dividend rate of 5 percent. In addition, the company has 20,000 shares of $1 par value common stock outstanding. Fredrick did not pay dividends in 2014, but is planning to pay a dividend of $18,000 in 2015. If the preferred stock is cumulative, what amount of the dividend will be distributed to the preferred shareholders in 2015?

Group of answer choices

$5,000

$10,000

$18,000

$9,000

$4,000