Answer:
$12,000
Explanation:
For computing the preferred dividend, first we have to find out the yearly dividend which is shown below:
= Number of shares × par value per share × dividend rate
= 4,000 shares × $50 × 5%
= $10,000
In 2017, the dividend was paid of $8,000
Remaining dividend left is $10,000 - $8,000 = $2,000
So, the total preference dividend in 2018 would be
= Yearly dividend + remaining dividend left
= $10,000 + $2,000
= $12,000
Out of $40,000, the $12,000 will be paid to preferred stockholders and the remaining $28,000 will be paid to equity stockholders
