Preferred stockholders on a per share basis

Question

Problem:

Kuhns Corp. has 200,000 shares of preferred stock outstanding that is cumulative. The dividend is $3.00 per share and has not been paid for 3 years.

Required:

Question: If Kuhns earned $1 million this year, what could be the maximum payment to the preferred stockholders on a per share basis?

Choose one:

A. $9.50 Per Share

B. $5.00 Per Share

C. $6.00 Per Share

D. $15.00 Per Share

Note: Provide support for rationale.