Torino company has 2,200 shares of $50 par value, 7.0% cumulative preferred stock and 22,000 shares of $10 par value common stock outstanding. the company paid total cash dividends of $7,500 in its first year of operation. the cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is:
Multiple Choice
a. $ 15.400
b. $7.900