Reference no: EM132177720

Question - Sweet Company's outstanding stock consists of 1,300 shares of cumulative 5% preferred stock with a $100 par value and 11,300 shares of common stock with a $10 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends.

Dividend Declared year 1 $ 3,300 year 2 $ 7,300 year 3 $ 38,500

The amount of dividends paid to preferred and common shareholders in year 3 is:

• $8,900 preferred; $29,600 common.

• $6,500 preferred; $32,000 common.

• $19,500 preferred; $19,000 common.

• $38,500 preferred; $0 common.

• $0 preferred; $38,500 common.