A company has 6,500 shares of $50 par value, 5.00% cumulative and nonparticipating preferred stock and 65,000 shares of $10 par value common stock outstanding. The company paid total cash dividends of $6,500 in its first year of operation. The cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is:

$6,500

$9,750

$16,250

$26,000

$32,500