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Hey Saver Submit 39 The Surfs Up issues 1000 shares of 6% $100 par value preferred stock at the beginning of 2020. All remai
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Answer #1

Since it is given in the question that preferred stock is cumulative

the dividend for 2 years would be = (1000 shares * $100) *6% *2

                                                       =$12000

Hence common stock dividend would be = $18000-$12000 =$6000

Hence third option is correct.

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