Sharpie Inc has the following stock issued and outstanding

100,000 shares of $1 par value common stock, which were issued for $3 per share

25,000 shares of $5 par value 8% cumlative preferred stock, which were issued for $150,000

In year 1, Sharpie pays a dividend of $30,000.

How much of the dividend is paid to common shareholders in year 1?

Answer Choices:

20,000

10,000

30,000

0

Sharpie Inc has the following stock issued and outstanding 100,000 shares of $1 par value common stock, which were issued for $3 per share 25,000 shares of $5 par value 8% cumulative preferred stock, which were issued for $150,000 In year 1, Sharpie pays a dividend of $30,000. How much of the dividend is paid to common shareholders in year 1? 00 20,000 10,000 30,000