What amount of the total dividends will be distributed

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Question - Gemini Group declares a dividend of $275,000 for the quarter ending June 30 of the current year. Relevant stockholders' equity information is listed below:

Common Stock: $1 par (100,000 shares authorized, 75,000 shares outstanding)

Preferred Stock: $100 par, 8% cumulative (20,000 shares authorized and outstanding)

If Gemini has no preferred dividends in arrears, what amount of the total dividends will be distributed to the common stockholders?

A) $160,000

B) $217,105

C) $115,000

D) $171,875

Reference no: EM133162554

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