Acc 113 basic accounting Penn Foster - Chapter 8 - Accounting for and Presentation of Stockholders' Equity

Case 2:

$4.50, $75 par value cumulative preferred stock, 50,000 shares authorized and issued, 40,000 shares outstanding (there are 10,000 shares of treasury stock). Dividend payable quarterly, no dividends in arrears.Quarterly preferred dividend amount:

$4.50 40,000 shares outstanding 1/4 year =$45,000

I don't understand the equation and why I'm multiplying the $4.50 and not multiplying the $75. Is it because the $75 represents the treasury stock?