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What amount will common stockholders get for dividends

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Reference no: EM132792356

Problem 1: A Inc. has 10,000 shares of 5%, $100 par value cumulative preferred stocks outstanding. The dividends are five years in arrears. A declares that it will distribute $800,000 dividends this year. What amount will common stockholders get for their dividends?

Option 1: $500,000

Option 2: $550,000

Option 3: $800,000

Option 4: $750,000

Reference no: EM132792356

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