To protect creditors, corporations cannot pay dividends that exceed their 1. earnings. (T or F) If a corporation goes out of business, preferred stockholders are paid first, 2. creditors next, and finally common stockholders. (T or F) 3 Happy Corporation has issued 575,000 shares of common stock and 100,000 shares of cumulative preferred stock. Annual dividends on the 4 cumulative preferred stock are $2 per share. Last year, dividends of $1.25 per share were paid to preferred stockholders. This year the board of directors decided to distribute $1,080,000 in dividends. If you own 300 shares of common stock, what is the amount of your annual dividend? All stockbrokerage companies provide the same type of services. (Tor F)