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Chicago Company reported the following information at the end of the current year: Common stock ( $10 par value; 43,000 shares outstanding) Preferred stock, 10%

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Chicago Company reported the following information at the end of the current year: Common stock ( $10 par value; 43,000 shares outstanding) Preferred stock, 10% ($10 par value; 8,800 shares outstanding) Retained earnings $430,000 88,000 285,000 The board of directors is considering the distribution of a cash dividend to the two groups of stockholders. No dividends were declared during the previous two years. Assume the three cases below are independent of each other. Case A: The preferred stock is noncumulative; the total amount of all dividends is $35,000. Case B: The preferred stock is cumulative, the total amount of all dividends is $26,400. Case C: The preferred stock is cumulative; the total amount of all dividends is $90,800 Required: 1. Compute the amount of dividends, in total and per share, that would be payable to each class of stockholders for each case. (Round "Dividends per Share" to 2 decimal places.) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Assume Chicago Company issued a 30 percent common stock dividend on the outstanding shares when the market value per share was $24. Fill in the table below to show how this stock dividend would compare to Case C. (Leave no cells blank - be certain to enter "0" wherever required.) Item Assets $ AMOUNT OF DOLLAR INCREASE (DECREASE) Cash Dividend-Case C Stock Dividend 90,800 Decrease $ O No effect 0 No effect $ 129,000 No effect 90,800 Decrease $ (129,000) No effect $ Liabilities Stockholders' equity $

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