Occidental Produce,Inc.has 49,000 shares of common stock outstanding and 6,000 shares of preferred stock outstanding.The common stock is $0.08 par value; the preferred stock is 4% noncumulative with a $100.00 par value.On October 15,2017,the company declares a total dividend payment of $56,000.How much dividend will be paid to the preferred stockholders?

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Quizplus · Accepted Answer

C)Dividend paid to the preferred stockholders = ($100.00 × 4%)× 6,000 = $24,000