Question - Mega, Inc., has common and 6 percent preferred stock outstanding as follows:
Preferred stock: 10,000 shares, $100 par value, cumulative
Common stock: 50,000 shares, $50 par value
The company declares a total dividend of $200,000. If the dividends on preferred stock are one year in arrears (in addition to the current year), how will the total dividends be divided between the common and preferred stock?