Chicago Company reported the following information at the end of the current year: Common stock ( $7 par value; 45,000 shares outstanding) Preferred stock, 10% ( $12 par value; 9,000 shares outstanding) Retained earnings $315,000 108,000 286,000 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 $36,000. Case B: The preferred stock is cumulative; the total amount of all dividends is $32,400. Case C: The preferred stock is cumulative; the total amount of all dividends is $91,000. 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 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.) Dividends Dividends per Share Preferred Common Preferred Common Total Case A Case B Case C Required 1 Required 2 > Chicago Company reported the following information at the end of the current year: Common stock ( $7 par value; 45,000 shares outstanding) Preferred stock, 10% ( $12 par value; 9,000 shares outstanding) Retained earnings $315,000 108,000 286,000 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 $36,000. Case B: The preferred stock is cumulative; the total amount of all dividends is $32,400. Case C: The preferred stock is cumulative; the total amount of all dividends is $91,000. 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.) AMOUNT OF DOLLAR INCREASE (DECREASE) Cash Dividend-Case C Stock Dividend Item Assets Liabilities Stockholders' equity
