Homeowork question that Im really confused on

Question 6 pts 100,000 shares of $10 par value, 5% Eldorado Mining Co. issues cumulative preferred stock at an issue price of $11.00 per share. The stock is callable at a price of $12.00 per share plus any dividends in arrears. Which of the following is true? O Preferred stockholders are entitled to an annual dividend of $0.60 per share before common stockholders may be paid a dividend. O Preferred stockholders are entitled to an annual dividend of $0.50 per share before common stockholders may be paid a dividend. Preferred stockholders are entitled to an annual dividend of $1.00 per share before common stockholders may be paid a dividend. O O Preferred stockholders are entitled to an annual dividend of $0.55 per share before common stockholders may be paid a dividend