3. Pearl Garde Corporation has 75,000 shares of $1.80 preferred stock outstanding in addition to its common stock. The $1.80 designation means that the preferred stockholders receive an annual cash dividend of $1.80 per share. In 2018, Pearl Garde declares an annual dividend of $500,000. The allocation to preferred and common stockholders is: 3(Click the icon to view the data.) Read the requirements 1. How much in dividends must Pearl Garde declare each year before the common stockholders receive any cash dividends for the year? Pearl Garde must declare dividends of $ each year before the common stockholders receive any cash dividends for the year. 2. Suppose Pearl Garde declares cash dividends of $400,000 for 2018. How much of the dividends goes to preferred shareholders? How much goes to common shareholders? Class of Stock 2018 Dividends Preferred Common Total 3. Is Pearl Garde's preferred stock cumulative or noncumulative? How can you tell? Pearl Garde's preferred stock are (1) because they are not specifically designated as (2) 4. Pearl Garde passed the preferred dividend in 2017 and 2018. Then in 2019, Pearl Garde declares cash dividends of $1,000,000. How much of the dividends goes to preferred shareholders? How much goes to common shareholders? Class of Stock 2019 Dividends Preferred Common Total 3: Data Table S Preferred dividend (75,000 shares x 1.80 per share) ........ Common dividend (remainder: $500,000 - $135,000) 135,000 365,000 S 500,000 Total dividend 4: Requirements Answer these questions about Pearl Garde's cash dividends. 1. How much in dividends must Pearl Garde declare each year before the common stockholders receive any cash dividends for the year? 2. Suppose Pearl Garde declares cash dividends of $400,000 for 2018. How much of the dividends goes to preferred shareholders? How much goes common shareholders? 3. Is Pearl Garde's preferred stock cumulative or noncumulative? How can you tell? 4. Pearl Garde passed the preferred dividend in 2017 and 2018. Then in 2019, Pearl Garde declares cash dividends of $1,000,000. How much of the dividends goes to preferred shareholders? How much goes to common shareholders? (1) O cumulative O noncumulative (2) O cumulative O noncumulative