A Corporation Has 15,000 Shares of 10%, $50 Par Cumulative

A corporation has 15,000 shares of 10%, $50 par cumulative preferred stock outstanding and 25,000 shares of no-par common stock outstanding. Dividends of $37,500 are in arrears. At the end of the current year, the corporation declares a dividend of $120,000. What is the dividend per share for preferred shares and for common shares?

A) The dividend per share is $5.00 to preferred shares and $4.60 per share to common shares.
B) The dividend per share is $8.00 to preferred shares and $0 per share to common shares.
C) The dividend per share is $7.50 to preferred shares and $0.30 per share to common shares.
D) The dividend per share is $8.00 to preferred shares and $0.30 per share to common shares.