Peabody, Inc. has 5,000 shares of 7%, $100 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2014. If the board of directors declares a $30,000 dividend, the

a. preferred shareholders will receive 1/10th of what the common shareholders will receive.

b. preferred shareholders will receive the entire $30,000.

c. $30,000 will be held as restricted retained earnings and paid out at some future date.

d. preferred shareholders will receive $15,000 and the common shareholders will receive $15,000.