National Health Corporation $($NHC$)$ has a cumulative preferred stock issue outstanding, which has a stated annual dividend of $$9$ per share. The company has been losing money and has not paid preferred dividends for the last five years. There are $430,000$ shares of preferred stock outstanding and $730,000$ shares of common stock.

a$.$ How much is the company behind in preferred dividends?

Preferred dividends in arrears

$

b$.$ If $NHC$ earns $$17,500,000$ in the coming year after taxes and before dividends, and this is all paid out to the preferred shareholders, how much will the company be in arrears $($behind in payments$)?$ Keep in mind that the coming year would represent the sixth year.

Amount still in arrears

$

c$.$ This part of the question is not part of your Connect assignment.