Betta Corp. has 65,000 shares of $3 par common stock and 25,000 shares of $20 par 7% cumulative preferred stock. The company declares cash dividends of $80,000 during the current year and there are $8,000 dividends in arrears. What will be the total dividend payment to common stockholders?

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The preferred stockholders are entitled to their annual dividend of $35,000 (25,000 shares x $20 par x 7%) plus the $8,000 in arrears, totaling $43,000. The remaining $37,000 ($80,000 - $43,000) is available for the common stockholders.