Trade Days, Inc., has 10,000 shares of ($ 3.50, $ 50) par preferred stock, and 100,000 shares

Question:

Trade Days, Inc., has 10,000 shares of $\$ 3.50, \$ 50$ par preferred stock, and 100,000 shares of $\$ 4$ par common stock outstanding. Two years' preferred dividends are in arrears. Trade Days declares a cash dividend large enough to pay the preferred dividends in arrears, the preferred dividends for the current period, and a $\$ 1.50$ dividend to common. What is the total amount of the dividend? (pp. 569-570)

a. $\$ 255,000$

b. $\$ 220,000$

c. $\$ 150,000$

d. $\$ 105,000$

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