$15$

Multiple Choice

$3$ points

The Surf's Up issues $1,000$ shares of $6\%,$$$100$ par value preferred stock at the beginning of $2020.$ All remaining shares are common stock. The company was not able to pay dividends in $2020,$ but plans to pay dividends of $$18,000$ in $2021.$

Assuming the preferred stock is noncumulative, how much of the $$18,000$ dividend will be paid to preferred stockholders and how much will be paid to common stockholders in $2021?$

$$9,000$ to preferred stockholders and $$9,000$ to common stockholders.

$$18,000$ to preferred stockholders and $$0$ to common stockholders.

$$12,000$ to preferred stockholders and $$6,000$ to common stockholders.

$$6,000$ to preferred stockholders and $$12,000$ to common stockholders.