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The Swartz Company earned $30,000 last year. The capital stock of the company consists of $200,000 of 7% preferred stock and $100,000 of common stock.

The Swartz Company earned $30,000 last year. The capital stock of the company consists of $200,000 of 7% preferred stock and $100,000 of common stock. The directors declare a dividend of half of the entire earnings. Refer to Swartz Company. 



Compute the total amount that will be paid to the holders of preferred stock.

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