Question - The board of directors of Chavez, Inc. is contemplating a dividend of $400,000. The corporation had 40,000 shares of 6 percent, $50 par value cumulative preferred stock outstanding. There were 200,000 shares of $2 par value common stock outstanding at the time Chavez, Inc. declared dividends. Determine the dividends the preferred and common stockholders will receive if the preferred stock is one year in arrears.