A company has outstanding 9 million shares of $2 par value common stick and 1 million shares of $4 par value preferred stock. The preferred stock has an 8% dividend rate. The company declares $600,000 in total dividends for the year. Which of the following is true if dividends in arrears are $30,000?

A. Preferred stockholders will receive $350,000. Common stockholders will receive$250,000

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