QS 13-12 (Algo) 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 common 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. Calculation of preferred dividend: Total cash dividend To preferred shareholders To common shareholders Par Value per Preferred Dividend Rate Share Dividend per Preferred Share 96 Number of Preferred Shares Preferred Dividend for two years