They will receive $25 each.
There are two ways of solving.
1: To solve, you can divide $200 by 2 since there is you and your friend. That will be $100. After that, divide by 1/4. Which means 100/4. Then, your answer is $25.
2: To solve, divide 1/4 by 200. It is 50. Finally, divide by 2 since there is you and your friend. The answer would be $25.
In whichever way you do it, the answer is correct.