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Chicago Company reported the following information at the end of the current year: Common stock ($9 par value; 48,000 shares outstanding) $432,000 Preferred stock, 15%
Chicago Company reported the following information at the end of the current year: Common stock ($9 par value; 48,000 shares outstanding) $432,000 Preferred stock, 15% ($10 par value; 9, 700 shares outstanding) 97,000 Retained earnings 289, 500 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 $39, 500. Case B: The preferred stock is cumulative; the total amount of dividends is $43, 650. Case C: The preferred stock is cumulative; the total amount of all dividends is $91, 700. 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.)
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