Question: Tri-State Industries has both common & noncumulative preferred stock outstanding. The dividends on these stocks are 1.35 dollar each quarter for the common & 2.10 dollar each quarter for the preferred. The company has not paid any dividends for the past three quarters but is expected to pay dividends on both the common & the preferred stock next week. Calculate the minimum amount the firm must pay per share to its preferred stockholders next week if it plans to pay a common dividend?
[A] $4.20
[B] $6.30
[C] $8.40
[D] $0
[E] $2.10