K2 Inc. has started its business in 2018. the company has 2000 preferred shares outstanding, which 15%, $50 par value and 10,000 common shares outstanding. For the last two years, there was no dividend declared and paid to shareholders as the board preferred to reinvest and expand its operation. After two years, the company has performed well with a sufficient amount of cash on hand by 2020. This year the board decided to share its earings with its shareholders this year