1. New Hope Company has 15,000 shares outstanding of $200 par value, 7% cumulative preferred stock and 75,000 shares of $40 par value common stock. The company declared cash dividends of $630,000. Required:

a. If no arrearage on the preferred stock exists, how much in total dividends and in dividends per share is paid to each class of stock?

b. If one years dividend arrearage on the preferred stock exists, how much in total dividends and in dividends per share is paid to each class of stock?