Lafayette,Inc.was incorporated on January 1,2014.Lafayette issued 15,000 shares of common stock and 800 shares of preferred stock on that date.The preferred stock is cumulative,$100 par,with an 12% 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 $44,000.What is the total amount that will be paid to common stockholders?

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C)
 11ea86d6_83de_c793_92b6_1be81662c3ce_TB2804_00 Cumulative payment = [($100 × 12%)× 800] × 4 = $38,400
Amount paid to preferred stockholders = [($100 × 12%)× 800] × 4 = $38,400
The total amount that will be paid out to common stockholders =
 11ea86d6_83de_c794_92b6_c7803d14ec9b_TB2804_00