The stockholders' equity of ABC Inc. includes:

Preferred stock, 4%, $100 par value, cumulative, 30,000 shares authorized and 20,000 shared issued.

Common stock, $2 par value, 100,000 shares authorized and 50,000 issued and outstanding.

The board of directors declares and pays the annual dividend on the preferred stock and a $1 per share dividend on the common stock.

Will this cause a decrease in retained earnings, cash or stockholders equity? By how much?