Torino Company has 1,600 shares of $50 par value, 7.5% cumulative preferred stock and 16,000 shares of $10 par value common stock outstanding. The company paid total cash dividends of $5,000 in its first year of operation. The cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is: Multiple Choice $6,000. $7,000. $12,000. $1,000. $5,000.