Chapter End Review Problem 11-1 Sarchant Inc, has 50,000 prefernd ahapes issued and outstanding at December 31,2034 The stares bere issued at $25 per share and have a 48 dividend rate, gayable annually. The cormpany also has 200,000 commoe shares intued and outranding at December 31,2024 , and the catrpany/s net income for the year is 51,200,000, On December 31 , 2024, the company's board of dinctors declared dividenils equal to 25% of net income. Required a. Assuming that the preferred shanes are cumulative and that Marchant had two yrars of dividends in arrears at the start of 2024 , determine the amount of dividenids that notld be paid to the preferred hareholders and to the comnon ahareholders in 2024 . b. Assuming that the preferred ahares are non-cumulative and that Marchant had two sears of dividends in arrears at the atart of 2024 , determine the amount of dividende that would be paid to tbe preferred shareholden and to the common ahareholders in 202 .4. STRATEGIES FOR SUCCESS - When dealing with cumblative preferred shares, remember that any dividends in arrears must be paid together with the dividends for the current sear, before any dividends ean be distributed to common shareholders