Garcia, Inc. has outstanding 600,000 shares of $2 par common stock and 120,000 shares of 8% preferred stock with a par value of $50. The preferred stock is cumulative and participating. In 2020, Garcia, Inc. pays a common dividend of $ 10 per share, which is equivalent to a dividend rate of 12%Which of the following is true?

1. The preferred stockholders will receive a dividend of $4 per share.

2. The preferred stockholders will receive a dividend of $10 per share.

3. None of the above

4. Only common stockholders will receive a dividend