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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% (
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. Three independent cases are assumed: Case A: The preferred stock is noncumulative; the total amount of dividends is $36,000 Case B: The preferred stock is cumulative; the total amount of 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.) Dividends Dividends per Share Preferred CommonTotal Preferred Common Case A Case B Case
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