Question Help Star Garde, Inc. has 100,000 shares of $1.40 cumulative preferred shares outstanding in addition to its common shares. Assume that in 2020, Star Garde declares an annual dividend of $1,001,000. The allocation to preferred and common shareholders is as follows (Click the icon to view the data.) Answer these questions about Star's cash dividends: Requirements Requirement 1. How much in dividends must Star declare each year before the common shareholders receive any cash dividends for the year? Star Garde must declare dividends of each year before the common shareholders receive any cash dividends for the year Requirement 2. Suppose Star declares cash dividends of $600,000 for 2020. How much of the dividends go to preferred? How much go to common? Class of shares 2020 Dividends Preferred Common Total Requirement 3. Are Star's preferred shares cumulative or non-cumulative? How can you tell? Star Garde's preferred shares are because preferred shares are V unless they are stated as Requirement 4. Star passed the preferred dividend in 2018 and 2019. Then in 2020, Star declares cash dividends of $900,000. How much of the dividends go to preferred? How much go to common? Class of Shares 2020 Dividends Preferred Common Total Enter any number in the edit fields and then continue to the next question. i Data Table Preferred dividend (100,000 shares x $1.40 per share). $ Common dividend (remainder: $1,001,000 - $140,000) 140,000 861,000 Total dividend S 1,001,000 Print Done