A company has outstanding 11.00 million shares of $3.00 par common stock and 2.4 million shares of $7.00 par preferred stock. The preferred stock has an 8% dividend rate. The company declares $480,000 in total dividends for the year. Which of the following is correct if the preferred stockholders only have a current dividend preference?

a. Preferred stockholders will receive the entire $480,000, and they must also be paid $80,000 before the end of the current accounting period. Common stockholders will receive nothing.
b. Preferred stockholders will receive the entire $480,000, and they must also be paid $80,000 sometime in the future before common stockholders will receive anything.
c. Preferred stockholders will receive $38,400 or 8% of the total dividends. Common stockholders will receive the remaining $441,600.
d. Preferred stockholders will receive the entire $480,000, but will receive nothing more relating to this dividend declaration. Common stockholders will receive nothing.