E11-10 Computing DIvidends on Preferred Stock and Analyzing Differences [LO 11-3, Lo 11-4] The records of Hoffman Company reflected the followng balances In the stockholders'equity accounts at December 31, 2018 Conmon stock, par $12 per share, 43,888 shares outstanding Preferred stock, 8 percent, par $16 per share, 6,518 shares outstanding Retained earnings, $226,6e On January 1, 2019, the board of directors was consldering the distribution of a $62.600 cash dividend. No dividends were pald during 2017 and 2018. Required: 1. Determine the total and per-share amounts that would be pald to the common stockholders and to the preferred stockholders under two Independent assumptions: a. The preferred stock Is noncumulative. b. The preferred stock is cumulative. 2 Why were the dividends per share of common stock less for the cumulative preferred stock than the noncumulative preferred stock? 3. What factors would cause a more favorable dividend for the common stockholders? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2 Req 3 Determine the total and per-share amounts that would be paid to the common stockholders and to the preferred stockholders assuming the preferred stock is cumulative. (Round "Per Share" to 2 decimal places and rest to the nearest dollar amount.) Paid to the Preferred 24.998 3.84 37,602 0.87 Paid to the