A company has outstanding 12.00 million shares of $5.00 par common stock and 2.4 million shares of $5.40 par preferred stock. The preferred stock has an 12% dividend rate. The company declares $440,000 in total dividends for the year. Which of the following is correct if the preferred stockholders only have a current dividend preference? a. Preferred stockholders will receive the entire $440,000, and they must also be paid $208,000 before the end of the current accounting period. Common stockholders Will receive nothing.
b. Preferred stockholders will receive the entire $440,000, but will receive nothing more relating to this dividend declaration. Common stockholders Will receive nothing.
c. Preferred stockholders will receive the entire S440,000. and they must also be paid S208,OOO sometime in the future before common stockholders Will receive anything.