Reference no: EM13611451

Shawl co. has $10 par value, 10% cumulative preffered stock. There are 10,000 shares issued and outstanding of the preffered stock. The company also has 100,000 shares of $1 par value common stock. No dividends had been paid in the years 2003, 2004, 2005, and 2006. In 2007, the company paid $35,000 in dividends. In 2008, the company paid $65,000 in dividends. Determine the allocation of dividends between preferred and common stockholders for 2007 and 2008.