Question 8: Enterprise Storage Company has 510,000 shares of cumulative preferred stock outstanding, which has a stated dividend of $4.75. It is six years in arrears in its dividend payments. UseAppendix Bfor an approximate answer but calculate your final answer using the formula and financial calculator methods.

a.How much in total dollars is the company behind in its payments?(Do not round intermediate calculations. Input your answer in dollars, not millions (e.g., $1,234,000).)

b.The firm proposes to offer new common stock to the preferred stockholders to wipe out the deficit. The common stock will pay the following dividends over the next four years: