Torino Company has 2,500 shares of $50 par value, 5.0% cumulative and nonparticipating preferred stock and 25,000 shares of $10 par value common stock outstanding. The company paid total cash dividends of $6,000 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

$250.

$6,000.

$6,500.

$12,500.

$6,250.