Sizemore Inc

Sizemore Inc.has 10000 shares of 4% $100 par value cumulative preferred stock and 100000 shares of $1 par value common stock outstanding at December 31 2021.If the board of directors declares a $25000 dividend the

A) preferred stockholders will receive 1/10th of what the common stockholders will receive.
B) preferred stockholders will receive the entire $25000.
C) $25000 will be held as restricted retained earnings and paid out at some future date.
D) preferred stockholders will receive $12500 and the common stockholders will receive $12500.