Lafayette,Inc.was incorporated on January 1,2014.Lafayette issued 5,000 shares of common stock and 700 shares of preferred stock on that date.The preferred stock is cumulative,$100 par,with an 10% dividend rate.Lafayette has not paid any dividends yet.In 2017,Lafayette had its first profitable year,and on November 1,2017,Lafayette declared a total dividend of $40,000.What is the total amount that will be paid to common stockholders?

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C)
 11ea8a42_4f5b_c3c5_8b44_69b0171eacab_TB5024_00 Cumulative payment = [($100 × 10%)× 700] × 4 = $28,000
Amount paid to preferred stockholders = [($100 × 10%)× 700] × 4 = $28,000
The total amount that will be paid out to common stockholders = 11ea8a42_4f5b_c3c6_8b44_a7d98bac4faa_TB5024_00