1b. Assume that preferred stock is cumulative and calculate total dividends paid out to each class of shareholders for each of Years 1, 2, 3, and 4 and the years combined.

Cash Dividends Distributed by Year Number of Shares $400,000 $350,000 Preferred Stock $300,000 $250,000 $200,000 Common Stock $150,000 Preferred Stock Dividend Rate $100,000 Preferred Stock 6% Par Value Per Share $50,000 Common Stock $0.01 $0 Preferred Stock $20.00 Year 1 Year 2 Year 3 Year 4 Common Stock Share Price Year 1 Year 2 Year 3 Year 4 Cash Dividends Distributed by Year Number of Shares $400,000 $350,000 Preferred Stock $300,000 $250,000 $200,000 Common Stock $150,000 Preferred Stock Dividend Rate $100,000 Preferred Stock 6% Par Value Per Share $50,000 Common Stock $0.01 $0 Preferred Stock $20.00 Year 1 Year 2 Year 3 Year 4 Common Stock Share Price Year 1 Year 2 Year 3 Year 4