Sizemore, Inc has 10,000 shares of 4% per value, cumulative preferred stock and 100,000 shares of $1 par value common stock outstanding at December 31,2020. If the board of directors declares a $25,000 dividend, the

A) preferred stockholders will receive the entire $25000

b) $25000 will be held as restricted earnings and paid out at some future date

c) preferred stockholders will receive $12.5k and the common stockholders will receive $12.5k

d) preferred stockholders will receive 1/10th of what common stockholders receive