he outstanding capital stock of Edna Millay Corporation consists of2,000shares of $100par value,8% preferred, and5,000shares of $50par value common.

Assuming that the company has retained earnings of $90,000, all of which is to be paid out in dividends, and that preferred dividends were not paid during the 2 years preceding the current year, state how much each class of stock should receive under each of the following conditions.

(c)The preferred stock is cumulative and participating.(Round the rate of participation to 4 decimal places, e.g.1.4278%. Round answers to 0 decimal places, e.g. $38,487.) I am able to get this far then I am stumped.

Dividends in arrears, 8% of 200,000 for 2 years 32,000 Common

Current year's dividend 16,000 20,000

Participating dividend 4.8889 (22,000/450,000)

I don't understand how to get the amount for the next step.

Preferred	Common
$	$