As head of Adita Inc., potential investors are asking questions about the company's dividend payment history. The investors are also curious how dividend payments differed for common and preferred shareholders. To help answer their questions, the following Tableau Dashboard is provided. 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 $25 $20 $15 $10 $5 $0 Year 1 Year 2 Year 3 Year 4 *** + ableau TO 1a. Assume that preferred stock is noncumulative and calculate total dividends paid out to each class of shareholders for each of Years 1, 2, 3, and 4 and the years combined. 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. 1c. Would potential investors favor noncumulative or cumulative preferred stock assuming they were priced the same? 2. If Adita wanted to attract more investors to its preferred stock, which of the following features should it add? 3. Why might Adita want to issue preferred stock instead of common stock? 4. Why might an investor prefer Adita's preferred stock over its common stock? Required 1A Required 1B Required 10 Required 2 Required 3 Required 4 Assume that preferred stock is noncumulative and calculate total dividends paid out to each class of shareholde Years 1, 2, 3, and 4 and the years combined. (Round your "Dividend per Preferred Share" answer to 1 decimal Annual Preferred Dividend: Par Value per Dividend per Preferred Dividend Rate Preferred Share Share $ 20.00 6.0% $ 1.2 Total Cash Paid to Paid to Dividend Paid Preferred Common Number of Preferred Preferred Dividend Shares 70,000 $ 84,000 Dividends in Arrears at year-end $ Year 1 Year 2 Year 3 Year 4 Totals 25,000 30,000 210,000 360,000 625,000 $ $ $ 0 $ Required 1A Required 1B Required 1C Required 2 Required 3 Required 4 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. (Round your "Dividend per Preferred Share" answer to 1 decimal place.) Par Value per Preferred Share Dividend Rate Dividend per Preferred Share Number of Preferred Shares Preferred Dividend Annual Preferred Dividend: Paid to Common Dividends in Arrears at year-end Year 1 Year 2 Year 3 Year 4 Totals Total Cash Paid to Dividend Paid Preferred $ 25,000 30,000 210,000 360,000 $ 625,000 $ $ 0 $ 0 Required 1A Required 1B Required 1C Required 2 Required 3 Required 4 Would potential investors favor noncumulative or cumulative preferred stock assuming they were priced the same? Would potential investors favor noncumulative or cumulative preferred stock assuming they were priced the same? Required 1A Required 1B Required 1C Required 2 Required 3 Required 4 If Adita wanted to attract more investors to its preferred stock, which of the following features should it add? If Adita wanted to attract more investors to its preferred stock, which of the following features should it add? Required 1A Required 1B Required 1C Required 2 Required 3 Required 4 Why might Adita want to issue preferred stock instead of common stock? Why might Adita want to issue preferred stock instead of common stock? Required 1A Required 1B Required 1C Required 2 Required 3 Required 4 Why might an investor prefer Adita's preferred stock over its common stock? (Select all that apply.) Preferred stock sometimes includes a preference for receiving dividends and assets in liquidation. If the investor believes that the company's common stock is too risky or that the expected return on common stock is too low. If the company's preferred stock has no voting rights. To receive guaranteed dividends each year even the directors never declare a dividend