A company has 7,500 shares of $50 par value, 4.00% cumulative and nonparticipating preferred stock and 75,000 shares of $10 par value common stock outstanding. The company paid total cash dividends of $7,500 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:

rev: 12_14_2015_QC_CS-36448

A) $7,800

B) $15,000

C) $7,500

D) $22,500

E) $30,000