11. Apple Tree Mall, Inc., has 2,000 shares of 2%, $25 par cumulative preference shares and 125,000 shares of $2 par ordinary shares outstanding. At the beginning of the current year, preference dividends were four years in arrears. Apple Tree’s board of directors wants to pay a $2.50 cash dividend on each share of outstanding ordinary shares in the current year. To accomplish this, what total amount of dividends must Apple Tree declare?

a. $312,500

c. $318,750

b. $317,500

d. Some other amount