Diamond Garde Corporation has 50,000 shares of $1.35 preferred stock outstanding in addition to its common stock. The $1.35 designation means that the preferred stockholders receive an annual cash dividend of $1.35 per share. In 2021, Diamond Garde declares an annual dividend of $500,000. The allocation to preferred and common stockholders is: (Click the icon to view the data.) Read the requirements 1. How much in dividends must Diamond Garde declare each year before the common stockholders receive any cash dividends for the year? Dividends the company must declare each year before the common stockholders receivable any cash dividends = Data table Preferred dividend (50,000 shares * 1.35 per share) Common dividend (remainder: $500,000 - $67,500) 67,500 432.500 Requirements $ 500,000 Total dividend Print Done Answer these questions about Diamond Garde's cash dividends. 1. How much in dividends must Diarrond Garde declare each year before the common stockholders receive any cash dividends for the year? 2. Suppose Diamond Garde declares cash dividends of $300,000 for 2021. How much the dividends goes to preferred shareholders? How much goes to common shareholders? 3. Is Diamond Garde's preferred stock cumulative or noncumulative? How can you tell? 4. Diamond Garde passed the preferred dividend in 2020 and 2021. Then in 2022, Diamond Garde declares cash dividends of $2,000,000. How much of the dividends goes to preferred shareholders? How much goes to common shareholders? Print Done