A company is formed with the issue of 100000 6% non-cumulative preference shares of $1 each and 300000 ordinary shares of $1 each issued at a premium of $0.20. It earned profits of $3000, $16000 and $31000 in the first three years of trading. The directors wish to pay an ordinary dividend of 5% each year when possible. What value of ordinary dividends does the company actually pay in years 2 and 3? year 2 year 3 $ $ A 7000 15000 B 7000 18000 C 10000 15000 D 10000 18000