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The Marcel Company has not paid any dividends during its first three years of operation. However, after showing continued growth and profitability, the company

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The Marcel Company has not paid any dividends during its first three years of operation. However, after showing continued growth and profitability, the company declared a dividend to be paid at the end of year four. The total amount of the dividend was $63,500. Marcel Company has the following capital structure: 5% Cumulative Preferred Stock, $100 par value, 2,000 shares issued and outstanding 7% Non-cumulative Preferred Stock, $50 par value, 1,000 shares issued and outstanding Common Stock, $10 par value, 12,000 shares, issued and outstanding REQUIRED: Determine how much of the $63,500 dividend in Year 4 is to be properly allocated to each group of stockholders above. Please, show all calculations.

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