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