Answer:
The correct option is C,$2.25 and $0.00.
Explanation:
The annual preferred shares dividends=20,000*$100*2%=$40,000
In the first year ,dividends of $10,000 paid would go to preferred stockholders while the common stockholders receive nothing.
In the second year,it is imperative to note that the balance of unpaid preferred stock dividends of $30,000 ($40,000-$10,000) would be paid alongside this year preferred dividends.
preferred stock dividends=$30,000+$40,000
However the $45,000 paid is not enough to settle the preferred stockholders,again,the total dividends of $45,000 would be paid to preferred stockholders
preferred stock dividend per share=$45,000/20,000=$2.25
common stock dividend per share is $0
Option C is the correct answer.
