Problem:
Zeff Corporation has 2,000 shares outstanding of cumulative preferred stock and 6,000 shares of common stock. The preferred stock is entitled to an annual dividend of USD 18 per share before dividends are declared on common stock. No preferred dividends were paid for last year and the current year.
Required
Question: What are the total dividends received by each class of stock if Zeff Corporation distributes USD 108,000 in dividends?
Note: Please provide through step by step calculations.