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:
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.$3.25 and $0.25
b.$2.00 and $0.25
c.$4.50 and $0.90
d.$4.50 and $0.25