The company declared and paid a cash dividend on February 1, 2021 of $1,400,000. Dividends had not been declared for the past two years, 2019 and 2020. How much will each shareholder group receive?

the preferred shares were non cumulative and fully participating. How much will each shareholder group receive?

a.

All $1,400,000 to Common since the Preferred are non-participating.

b.

Each group receives an equal amount of $700,000 per group.

c.

$270,000 to Preferred and $1,130,000 to Common.

d.

$807,692 to Preferred and $592,308 to Common.

e.

None of the above.