Maximum payment to preferred stockholders

Reference no: EM1328755

Kuhns Corp. has 200,000 shares of preferred stock outstanding that is cumulative. The dividend is $6.50 per share and has not been paid for 3 years. If Kuhns earned $3 million this year, what could be the maximum payment to the preferred stockholders on a per share basis?

a) $19.50 per share
b) $15 per share
c) $13 per share
d) $6.50 per share

Reference no: EM1328755

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