Slickers, Inc

Multiple Choice

Slickers, Inc. had the following capital structure during 2014: Preferred stock, 7%, $50 par value, 1,000 shares issued and outstanding with dividends in arrears for 2012 and 2013.
Common stock, $100 par value, 2,000 shares issued and outstanding.
The total dividends declared and paid during 2014 totaled $25,000. How much of the dividend is paid to the preferred stockholders during 2014 assuming the preferred stock is cumulative?

A) $3,500.
B) $7,000.
C) $10,500.
D) $14,500.