Williams Plc Has Issued 2,000,000 £1 Ordinary Shares and 1,200,000

Multiple Choice

Williams plc has issued 2,000,000 £1 ordinary shares and 1,200,000 5% preference shares of £1 each. If the directors pay an ordinary dividend of 6 pence per ordinary share and the full amount payable to the preference shareholders is paid, which one of the following is true?

A) The ordinary dividend payable would be £120,000 and the preference dividend payable will be £72,000.
B) The ordinary dividend payable would be £100,000 and the preference dividend payable will be £72,000.
C) The ordinary dividend payable would be £120,000 and the preference dividend payable will be £60,000.
D) The ordinary dividend payable would be £100,000 and the preference dividend payable will be £60,000.