. Huge Corporation has issued 3,000, $7 noncumulative preferred shares and 10,000

common shares. Dividends have not been paid on the preferred shares for the current and

one prior year. Huge has recently prospered, and the board of directors has voted to pay

out $49,000 from retained earnings in cash dividends. Once the $49,000 is paid out, how

much would the preferred and common shareholders receive per share?

A. $14.00 per share preferred, $0 per share common.

B. $7 per share preferred, $2.80 per share common.

C. $0 per share preferred, $4.90 per share common.

D. $14.00 per share preferred, $0.70 per share common.

E. $12.25 per share preferred, $0.23 per share common.