What will the total preferred dividend

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Question - The McFarland Company last paid a dividend in 2014 in the amount of $8,000. It has $20 par, 6 percent cumulative preferred stock, 10,000 shares issued and outstanding, as well as $10 par, 6 percent common stock, 20,000 shares issued and outstanding. The preferred shareholders participate at a rate of 2 percent when common dividends are paid. In 2015 a cash dividend of $80,000 was declared. What will the total preferred dividend for 2015 be?

A. $16,000

B. $20,000

C. $4,800

D. $48,000

Reference no: EM133101795

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