Koon Corporation has the following stock outstanding:
6% Preferred, $100 Par $1,200,000
Common Stock, $50 Par 2,000,000
No dividends were paid the previous 2 years. If Koon declares $400,000 of dividends in the current year, how much will preferred stockholders receive if the preferred stock is cumulative?
a) $144,000
b) $72,000
c) $184,000
d) $216,000