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? However, now assume that for this question only that the preferred shares were cumulative and participating in excess distributable dividends after allocating common shareholders a minimum dividend of $0.80 per share. How much will each shareholder group receive?

a. $1,080,000 to Preferred and $320,000 to Common

b. $965,769 to Preferred and $434,231 to Common

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

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

e. $810,000 to Preferred and $590,000 to Common