Problem:
Miriah Inc. has 10,000 shares of 5%, $100 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2014.
Required:
Question: What is the annual dividend on the preferred stock?
a. $50,000 in total
b. $0.50 per share
c. $10,000 in total
d. $50 per share
Note: Be sure to show how you arrived at your answer.