Optimum Garde Corporation has 80,000 shares of $1.25 preferred stock outstanding in addition to its common stock. The $1.25 designation means that the preferred stockholders receive an annual cash dividend of $1.25 per share. In 2018, Optimum Garde declares an annual dividend of $500,000. The allocation to preferred and common stockholders is: (Click the icon to view the data.) Read the requirements 1. How much in dividends must Optimum Garde declare each year before the common stockholders receive any cash dividends for the year? Optimum Garde must declare dividends of $ each year before the common stockholders receive any cash dividends for the year. Data Table $ Preferred dividend (80,000 shares x 1.25 per share) Common dividend (remainder: $500,000 - $100,000) 100,000 400,000 500,000 Total dividend. Print Done Requirements x Answer these questions about Optimum Garde's cash dividends. 1. How much in dividends must Optimum Garde declare each year before the common stockholders receive any cash dividends for the year? 2. Suppose Optimum Garde declares cash dividends of $250,000 for 2018. How much of the dividends goes to preferred shareholders? How much goes to common shareholders? 3. Is Optimum Garde's preferred stock cumulative or noncumulative? How can you tell? 4. Optimum Garde passed the preferred dividend in 2017 and 2018. Then in 2019, Optimum Garde declares cash dividends of $1,300,000. How much of the dividends goes to preferred shareholders? How much goes to common shareholders? Print Done Enter any number in the edit fields and then click Check Answer. parts remaining Clear All Check