A Corporation Has 5,000 Shares of $5 Par, 6% Cumulative

Short Answer

A corporation has 5,000 shares of $5 par, 6% cumulative preferred stock outstanding and 25,000 shares of $2 par common stock outstanding. No dividends have been paid for the past 2 years. If the company wishes to distribute $2 per share to the common stockholders this year, what is the total amount of dividends that must be paid?
a.$4,500
b.$50,000
c.$51,500
d.$54,500