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Classic Cars Corp. has50,000 shares of$10 par common stock and20,000 shares of$15 par fully participating10% cumulative preferred stock. If the company declares cash dividends of$100,000 during the current year and there are no dividends inarrears, what will be the total dividend payment to preferred share holders?
A. $42,500B. $57,500C. $37,500D. $62,500
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