Question - Parnell Limited has issued 5 000 shares of 3 per cent cumulative preferred shares issued at $5 per share and 25 000 ordinary shares.
No dividends have been paid for the past two years.
If the company wishes to distribute $2 per share to the ordinary shareholders, what is the total amount of dividends that must be paid in the current year?
$2 250
$52 250
$50 750
$50 000