Nichols, Inc. has 8000 shares of 4%, $100 par value, cumulative preferred stock and 75,000 shares of $1 par value common stock outstanding at December 31, 2017. What is the annual dividend that will be paid to the preferred stockholders?

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The annual dividend for preferred stockholders is calculated as 4% of the par value of the preferred stock. Therefore, 4% of $100 par value is $4 per share. With 8000 shares, the total annual dividend is 8000 shares * $4 = $32,000.