Jake, the president and CEO of Morgan Corporation had experienced remarkable activity in its share prices of the corporation. The primary reason for this was obtaining more profits, and the presence of available cash to distribute cash dividends.

The other members of management called a meeting to determine a mechanism for distributing cash dividends.

As an expert in this field, explain how the cash dividends can be distributed between the classes of stocks (common and preferred stock, cumulative and not cumulative) (explain and give an example).