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What is the cash dividend

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Question - A company has 1,000 shares of $50 par value, 4.5% cumulative preferred stock and 10,000 shares of $10 par value common stock outstanding. The company paid no cash dividends its first year of operation. In year 2, it declared a $20,000 dividend to the two classes of stockholders. What is the cash dividend that must be paid to the preferred stockholders in the second year?

Reference no: EM132441177

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