Problem regarding preferred stockholders

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Reference no: EM13128949

Koon Corporation has the following stock outstanding:

6% Preferred, $100 Par $1,200,000

Common Stock, $50 Par 2,000,000

No dividends were paid the previous 2 years. If Koon declares $400,000 of dividends in the current year, how much will preferred stockholders receive if the preferred stock is cumulative?

a) $144,000

b) $72,000

c) $184,000

d) $216,000

Reference no: EM13128949

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