Sofia LtdReported Net Income of $5,300,000 for 2017, and Earnings Per

Multiple Choice

Sofia Ltd.reported net income of $5,300,000 for 2017, and earnings per share of $5.00.Included in the net income was $750,000 of bond interest expense related to its long-term debt.The income tax rate for 2017 was 30%.Dividends paid on preferred shares were $1,000,000.The payout ratio on common shares was 25%.What were the dividends paid on common shares in 2017?

A) $1,075,000
B) $1,325,000
C) $1,206,250
D) $1,612,500