A company's board of directors' votes to declare a total cash dividend of $15,000. The company has 2,500 shares of $1 par common stock and 400 shares of 5%, $200 par preferred stock outstanding. What is the total amount that will be paid to preferred shareholders

$4,000

Explanation:

The computation of the  total amount that will be paid to preferred shareholders is shown below:

= Number of preference shares × dividend rate × par value

= 400 shares × 5% × $200

= $4,000

We simply applied the above formula so that the total amount of dividend paid to preference shareholders could come

And the same is to be considered

if you use only 25 for your entertainment and only 200 for the groceries that you really need and take out the 50 per month for the computer then that should be enough