Crane Corp reports the following information in its equity section of the balance sheet:

$250,000 in Preferred shares, $4, 5,000 outstanding, cumulative, non-voting

$750,000 in Common shares, 25,000 outstanding

Last year was the first year that the company paid no dividends. The board of directors declared total cash dividends of $60,000 for this year.

What will be the dividend payable on each common share this year?

a. 2.40

b. 1.60

c. 2.00

d. 1.00

c.2.38