Andrews Company has $80,000 available to pay dividends. It has 2,000 shares of 10%, $100 par, preferred stock and 30,000 shares of $10 par common stock outstanding. The preferred stock is selling for $125 per share, and the common stock is selling for $20 per share.
What is the: Preferred stock is fully participating and cumulative. Preferred dividends are 1 year in arrears at the beginning of the year.