The Gulf Corporation has 40,000 shares of common stock and 5,000 of preferred stock. The par value of the common stock was $10 and the par value of the preferred stock was $20.

The company declared the following dividends in the following years:

2007 $5000

2008 $8,000

2009 $25,000

Instruction:

1. Calculate the dividends to each class of stock assuming the preferred stock is 8% of the par value and it is cumulative.