Zach Sports Ltd Has 1,000 Shares of $5

Multiple Choice

Zach Sports Ltd has 1,000 shares of $5.50,cumulative preferred shares and 10,000 common shares issued and outstanding.In the previous year (which was the first year of operations) ,the company paid total dividends of $1,000.The amount that must be paid to the preferred shareholders in the current year before any dividend is paid to common shareholders is

A) $1,000
B) $3,500
C) $4,500
D) $10,000
E) $12.000