Sofitel Hotels and Resorts has 200,000 shares of $1.00 cumulative preferred shares outstanding in addition to its common shares. Assume that in 2019, Sofitel Hotels and Resorts declares an annual dividend of $1,000,000. The allocation to preferred and common shareholders is as follows: Preferred dividend (200,000 shares x $1.00 per share) $200,000 Common dividend (remainder: $1,000,000 -$200,000) $800,000 Total Dividend $1,000,000 1. How much dividends must Sofitel Hotels and Resorts declare each year before the common shareholders receive any cash dividends for the year? 2. Suppose Sofitel Hotels and Resorts declares cash dividends of $400,000 for 2019. How much of the dividends go to Preferred? And how much go to Common?