Question - Jerry Loos reported that a NYSE dealer has offered to place an issue of 5,600 shares of $100 par value, convertible preferred stock at $195 per share. A total of 10,000 shares were authorized. The preferred stock was issued March 1, 20X5. The dividend rate is 6%, participating to 8%. The conversion rights call for common shares to be exchanged for the preferred shares on a share-for-share basis. The dealer absorbed the issue costs and recovered the profit margin on the sale to the public. It was also mentioned that due to its strong cash position, the Company purchased 980 shares of the common stock on April 1, 20X5 to keep in treasury (Beginning balance of common shares is 14,000). Jerry called you to indicate that the company would be declaring a cash dividend of $50,000 on December 17. Jerry was trying to find out how to allocate the dividends to preferred and common stockholders.