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QS 11-10 Dividend allocation between classes of shareholders LO C2 Stockholders' equity of Ernst Company consists of 77000 shares of $5 par value, 9% cumulative referred stock and 265,000 mare 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 S110,000 cash dividend at the current year-end Determine the amount distributed to each class of stockholders for this two-year-old company Par Value per Dividend Dividend per Number of Dividend per Number of Preferred Preferred Share Preferred Share Preferred Dividend for Rate Shares two years Calculation of Preferred Dividend: Total cash dividend To preferred shareholders To common shareholders