3. Roger Tire Inc. (RTI) reported the following excerpts from shareholders equity on January 1, 2023: Preferred shares, 0.90, 300,000 issued and outstanding $6,000,000 Common shares, 400,000 issued and outstanding $4,400,000 The company declared and paid a cash dividend on February 1, 2023 of $1,400,000. Dividends had not been declared for the past two years.

Assume 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.