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A company issued 1,000 shares of common stock for $10 per share. The company also issued 500 shares of preferred stock for $25 per share.

A company issued 1,000 shares of common stock for $10 per share. The company also issued 500 shares of preferred stock for $25 per share. The preferred stock has a 6% dividend rate. Calculate the total amount of dividends that the company must pay each year to its preferred stockholders.

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