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

question 104

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)$51,500

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