Could you please help me with the following question:
A corporation had the following stock outstanding when the company's board of directors declared a $95,000 cash dividend the current year:
Preferred stock, $100 par, 6%, 5,000 shares issued $ 500,000
Common stock, $10 par, 75,000 shares issued $ 750,000
Total $ 1,250,000
Allocate the cash dividend between the preferred and common stockholders assuming the preferred stock is cumulative and nonparticipating and dividends are one year in arrears.