Ch. 13 Pre-Chapter Get Home The Stockholders. Mall - Taylor Reyno. Financial Services. Overview - Principl. The Gramm-Leach... Save & Exit Submit Help Saved --Chapter Check my work Stockholders' equity of Ernst Company consists of 88,000 shares of $5 par value, 10% cumulative preferred stock and 320,000 shares of $1 par value common stock. Both classes of stock have been outstanding since the company's inception. Ernst did not declare any dividends in the prior year, but it now declares and pays a $165,000 cash dividend at the current year-end. Determine the amount distributed to each class of stockholders for this two-year-old company. Number of Preferred Dividend for Dividend per Par Value per Preferred Dividend Rate Preferred Preferred Share Shares two years Share Calculation of preferred dividend: Total cash dividend To preferred shareholders To common shareholders