I have accounting problem that I am stuck on. Would appreciate anybody's help!
The problem reads:
Sunland Company had net income of $250,000 during the year. There were 200,000 common shares outstanding during the year. There were 1,000 shares of $100 par value, 8% preferred stock outstanding during the year. Determine the basic earnings per share.

I know the formula for basic earnign per share, but with the bold information, how would I find the preferred stock dividend? Thank you

Dividends are 1000*8% = $80 preferred dividend

EPS=(250,000 - 80)/200,000 = $1.25

Dividends are (1000*$100)8% = $8000 preferred dividend

EPS=(250,000 - 8000)/200,000 = $1.21

A preferred stock paying a 8.7% dividend on a $129 par value.
The cost of the preferred stock is % (round to two decimal places).