Occidental Produce, Inc has 49,000 shares of common stock outstanding and 6,000 shares of preferred stock outstanding
The common stock is $0.08 par value; the preferred stock is 4% noncumulative with a $100.00 par value. On October 15, 2017, the company declares a total dividend payment of $56,000. How much dividend will be paid to the preferred stockholders?
A) $56,000
B) $48,000
C) $24,000
D) $3,920
C .C) Dividend paid to the preferred stockholders = ($100.00 x 4%) x 6,000 = $24,000
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Indicate whether this statement is true or false.