Watson Company Has 5,000 Shares of $5 Par, 3% Preferred

Multiple Choice

Watson Company has 5,000 shares of $5 par, 3% preferred stock outstanding, and 25,000 shares of $2 par common stock outstanding.The preferred stock is cumulative and no dividends have been paid for the past two years.If the company wishes to distribute $2 per share to the common stockholders, what is the total amount of dividends that must be paid in the current year?

A) $2,250
B) $50,000
C) $50,750
D) $52,250