Year 1:

,$10,000

\ Year 2:

,45,000

\ Year 3:

,90,000

\ Determine the dividends per share for preferred and common stock for the third year.\ a.

$4.50

preferred and

$0.90

common\ b.

$2.00

preferred and

$0.25

common\ c.

$3.25

preferred and

$0.25

common\ d.

$4.50

preferred and

$0.25

common

Sabas Company has 20,000 shares of $100 par, 2% cumulative preferred stock and 100,000 shares of $50 par common stock. The following amounts were distributed as dividends: Determine the dividends per share for preferred and common stock for the third year. a. $4.50 preferred and $0.90 common b. $2.00 preferred and $0.25 common c. $3.25 preferred and $0.25 common d. $4.50 preferred and $0.25 common