QS 11-12 Dividend allocation between classes of shareholders LO C2 Stockholders equity of Ernst Company consists of 75,000 shares of $5 par value, 7% cumulative preferred stock and 255,000 shares of $1 par value coramon stock. Both classes of stock have been outstanding since the company's inception Ernst did not declare any dividends in the prior year, but it now declares and pays a $100,000 cash dividend at the current year-end Determine the amount distributed to each class of stockholders for this two-year-old company Par Value per Preferred Share Dividend Rate Dividend per Preferred Share Number of Preferred Shares Preferred Dividend for two year Calculation of preferred dividend % Total cath dividend To proferred shareholders To common shareholders 5