Parnell Limited has issued 5 000 shares of 3 per cent cumulative preferred shares issued at $5 per share and 25 000 ordinary shares.

No dividends have been paid for the past two years.

If the company wishes to distribute $2 per share to the ordinary shareholders, what is the total amount of dividends that must be paid in the current year?

$2 250

$52 250

$50 750

$50 000