Batista Corporation has been incorporated for 30 years. Its current paid-in capital is shown to the right. Batista has been expanding its operations; its board of directors declared a small dividend of $2,000 in 2009 and no dividend in 2010. The expansion was a success, and profits have increased. On December 6, 2011, the board of directors declared a dividend of $316,500 to stockholders on record at December 23, 2011, to be paid on December 30, 2011.
Paid-in capital for Batista Corporation: Preferred stock, $10 par, 5%, 12,000 shares authorized, 7,000 shares issued and outstanding $70,000 Common stock, $3 par, 200,000 shares authorized, 150,000 shares issued, 140,000 shares outstanding 450,000 Additional paid-in capital-preferred stock 49,000 Additional paid-in capital-common stock 168,000 Total paid-in capital $737,000 Determine the annual preferred dividend, assuming the number of shares of preferred stock issued and outstanding has not changed for the past three years.