What could be maximum payment to the preferred stockholder

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Problem 1: Kuhns Corp. has 240,000 shares of preferred stock outstanding that is cumulative and 100,000 common stock outstanding. The preferred dividend is $7.40 per share and has not been paid for 3 years. If Kuhns earned $1.40 million this year, what could be the maximum payment to the preferred stockholders on a per share basis? (Round your answer to 2 decimal places.)

Option 1: $7.33 per share
Option 2: $8.08 per share
Option 3: $5.83 per share
Option 4: $4.73 per share

Reference no: EM132917698

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