Assume the Following Capital Structure: Preferred Stock, 6%, $50 Par

Multiple Choice

Assume the following capital structure: Preferred stock, 6%, $50 par value, 1,000 shares issued and outstanding with dividends in arrears for three prior years (2011-2013) .
Common stock, $100 par value, 2,000 shares issued and outstanding.
Total dividends declared and paid in 2014 were $50,000. How much of the 2014 dividend will be paid to the preferred stockholders assuming the preferred stock is cumulative?

A) $12,000.
B) $3,000.
C) $47,000.
D) $38,000.