Pearland Company Has 5,000 Shares of Preferred Stock Outstanding

Multiple Choice

Pearland Company has 5,000 shares of preferred stock outstanding. The preferred stock has a $90 par value, a 5% dividend rate, and is noncumulative. If Pearland has sufficient funds to pay dividends, what is the total amount of dividends that will be paid out to preferred shareholders?

A) $10,800
B) $22,500
C) $9,000
D) $4,500