Reference no: EM132594951

OTU, Inc. began operations in 2021 by issuing 8,000 shares of 7%, $60 par value cumulative preferred stock and 12,000 shares of $20 par value common stock.

OTU, Inc. paid total dividends during its first four years of operations as follows:

              Total Dividends Paid
2021        $20,000
2022        $40,000
2023        $30,000
2024        $60,000

Question 1: The amount of the $60,000 dividend paid in 2024 that was paid to the common stockholders was equal to:

Group of answer choices

Option 1: $0

Option 2: $4,800

Option 3: $14,700

Option 4: $15,600

Option 5: $22,800

Option 6: $24,300

Option 7: $26,400

Option 8: none of the above choices are correct