Question 7 (1 point) CAB Inc. has 1,000 shares of 4%, $100 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2012. What is the annual dividend on the preferred stock? 1) $40 per share. O2) $4,000 in total. 3) $400 in total. 4) $0.40 per share