17 Common and Preferred Stock Surved Help Sove & Exit Submit Check my work Enterprise Storage Company has 300,000 shares of cumulative preferred stock outstanding, which has a stated dividend of $5.00. It is six years in arrears in its dividend payments. Use Appendix B. a. How much in total dollars is the company behind in its payments? Dividend in arrears $ 9000000 b. The firm proposes to offer new common shares to the preferred shareholders to wipe out the deficit. The common stock will pay the following dividends over the next four years Di D2 Ds 04 $1.80 2.05 2.30 2.55 The company anticipates earnings per share after four years will be $4.60 with a P/E ratio of 15. The common stock will be valued as the present value of future dividends plus the present value of the future stock price after four years. The discount rate used by the investment dealer is 12 percent