Halverstein Company's outstanding stock consists of 12,600 shares of cumulative 5% preferred stock with a $10 par value and 5400 shares of common stock with a $1 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends.   Dividend DeclaredYear 1$0?Year 2$10,800?Year 3$45,000?The amount of dividends paid to preferred and common shareholders in Year 2 is:

A. $7560 preferred; $3240 common.
B. $6300 preferred; $4500 common.
C. $10,800 preferred; $0 common.
D. $0 preferred; $10,800 common.
E. $5400 preferred; $5400 common.


Answer: C

Business

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