<u>Solution </u>- $18,000
$18000 will be paid to common stockholders in 2018.
Par Value per Preferred share Dividend rate Dividend for preferred share
Annual Preferred Dividend: 400000 6.00% $ 24,000.00
Year Total Cash dividend Paid Paid to Preferred Paid to common Dividends in arrears at year-end
2016 $ 20,000.00 $ 20,000.00 $ 0 $ 4,000
2017 $ 20,000.00 $ 20,000.00 $ 0 $ 8,000
2018 $ 50,000.00 $ 32,000.00 $ 18,000
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Cumulative preferred stockholders will get their dividend along with dividend in arrears for last 2 years and then the left will be paid to common stockholders.
