LL, Inc. needs working capital, so their lawyer creates a class of preferred stock that has a face value of $100 per share. Each preferred share receives a dividend preference in the form of a 10% cumulative annual dividend, and that has a liquidation preference to the common stock (it is entitled to be paid out before the common stock if the company is liquidated). To fund LL, Inc.'s need for working capital Billy buys 100 of the new preferred shares for $10,000 ($100 per share), but Jimmy doesn't have any money to invest. Billy and Jimmy continue to own the common stock 50-50. Billy has not been paid his dividend for two years on his preferred stock. When the end finally comes for LL, Inc. after all the creditors and expenses have been paid, there is $14,000 left to be distributed to all stockholders (both preferred and common). How much will Jimmy receive? $7,000 $4,000 $2,000 $1,000