Texas Inc. has 6,980 shares of 4%, $100 par value cumulative preferred stock and 94,726 shares of $1 par value common stock outstanding at December 31. What is the annual dividend on the preferred stock?

a. $27,920 in total

b. $3,789 in total

c. $6,980 in total

d. $40.00 per share

Texas Inc. has 6,980 shares of 4%, $100 par value cumulative preferred stock and 94,726 shares of $1 par value common stock outstanding at December 31. What is the annual dividend on the preferred stock?

a. $27,920 in total

b. $3,789 in total

c. $6,980 in total

d. $40.00 per share