Kaldi Company has 15,000 shares of $10 par value, 5% cumulative preferred stock and 200,000 shares of $20 par value common stock outstanding. The company paid total cash dividends of $5,000 in its first year of operation. The cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is: A. $10,000. B. $7,500. C. $5,000. D. $2,500.