Answer:
so correct option is B. $341,000
Explanation:
given data
shares = 60,000
common stock = $1 par value
shares = 16,000
rate 7%
stock outstanding = $100 par preferred
dividend = $1.95 per share
solution
we know that when preferred stock is cumulative than there pay last year prefer dividend in this year with addition of dividend this year
so here
Preferred dividend will be
Preferred dividend = 16,000 shares × 7% × $100 par
Preferred dividend = $112,000
and
he pay in preferred dividend = $112,000 + $112,000
pay in preferred dividend = $224,000
and
he pay dividend to common stockholders is
pay dividend to common stockholder = 60,000 × $1.95
pay dividend to common stockholder = $117,000
so that here total dividends payable will be
total dividends payable = $224,000 + $117,000
total dividends payable = $341,000
so correct option is B. $341,000
