Sheffield, Inc. has 10100 shares of 8%, $100 par value, cumulative preferred stock and 101000 shares of $1 par value common stock outstanding at December 31, 2020. If the board of directors declares a $80800 dividend, the

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

b. preferred shareholders will receive the entire $80800.

c. $80800 will be held as restricted retained earnings and paid out at some future date.

d. preferred shareholders will receive $40400 and the common shareholders will receive $40400.