Exercise 11.6 (Algo) Preferred Stock Alternatives (LO11-5, LO11-6) Easy Money, Inc., has the following capital structure. $ 160,000 Preferred stock-$25 par value, 10,000 shares authorized, 6,400 shares issued and outstanding Common stock-$10 par value, 100,000 shares authorized, 80,800 shares issued and outstanding Total paid-in capital Retained earnings Total stockholders' equity 800,000 $ 960,000 550,000 $1,510,000 The number of issued and outstanding shares of both preferred and common stock have been the same for the last two years. Dividends on preferred stock are 8 percent of par value and have been paid each year the stock was outstanding except for the immediate past year. In the current year, management declares a total dividend of $50,000. a. Indicate the amount that will be paid to both preferred and common stockholders assuming the preferred stock is not cumulative, b. Indicate the amount that will be paid to both preferred and common stockholders assuming the preferred stock is cumulative. a Amount to preferred stock Amount to common stock b. Amount to preferred stock Amount to common stock