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ABC Inc. has 15,000 $2.50 cumulative preferred shares and 75,000 common shares outstanding. There were no dividends declared or paid in the last 2 years,
ABC Inc. has 15,000 $2.50 cumulative preferred shares and 75,000 common shares outstanding. There were no dividends declared or paid in the last 2 years, but the Company declared $120,000 in dividends in the current year. Determine the amount of dividends that would be paid to the preferred shareholders, and the amount that would be paid to the common shareholders.
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