A corporation has 10,000 shares of 8 percent cumulative preferred stock and 20,000 shares of common stock outstanding. Par value for each is $100 . No dividends were paid last year, but this year a $200,000 dividend is paid. How much of this $200,000 goes to the holders of common stock?
a. $40,000
b. $80,000
c. $160,000
d. $180,000
A
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