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.
Hey Saver Submit 39 The Surf's Up issues 1000 shares of 6% $100 par value preferred...
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