hares of preferred stock, and 5,000 shares of common stock, eligible for lividends. The distribution of dividends would be as follows: The initial dividend obligation to participating preferred stock was 8% of $100 par or $8 per share. This accounted for the initial total dividend on preferred stock of $16,000. The common stock then receives a comparable distribution totaling $40,000. The balance of the dividend distribution amounted to $14,000. Total eligible preferred and common stock amounted 107,000 shares (2,000+5,000). The 7,000 shares were divided into the