Prevage Corporation Has 10,000 Shares of $10 Cumulative Preferred Shares

Multiple Choice

Prevage Corporation has 10,000 shares of $10 cumulative preferred shares outstanding and 50,000 common shares outstanding. As of the beginning of this fiscal year, there were 2 years' dividends in arrears on the preferred shares. The board of directors wants to give the common shareholders a $1.50 dividend per share at the end of this fiscal year. The total dividends to be declared by the
Prevage Corporation are:

A) $375,000
B) $105,000
C) $120,000
D) $175,000