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4. Maxwell Corp has 10,000 cumulative preferred shares that are entitled to dividends of $2.00 per share. It also has issued 5,000 common shares. Last

4. Maxwell Corp has 10,000 cumulative preferred shares that are entitled to dividends of $2.00 per share. It also has issued 5,000 common shares. Last year due to poor earnings the Board of Directors did not declare any dividends. This year, due to higher earnings the Board of Directors has declared dividends of $100,000. How would the dividends be allocated between the preferred shareholders and the common shareholders?

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