Swifty Corporation has $5500$ shares of $4\%,$$$100$ par value, cumulative preferred stock and $55000$ shares of $$1$ par value common stock outstanding at December $31,2020.$ If the board of directors declares a $$13750$ dividend, the

preferred stockholders will receive $$5750$ and the common stockholders will receive $$5750.$

preferred stockholders will receive the entire $$13750.$

preferred stockholders will receive $\frac{1}{10}$ th of what the common stockholders will receive.

$$13750$ will be held as restricted retained earnings and paid out at some future date.