ework 1 Seved P11-8 (Algo) Comparing Stock and Cash Dividends LO11-4, 11-6, 11-8 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; 3,800 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 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 eBook 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.) Print References 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.) Case A Case B Case C Dividends Dividends per Share Preferred Common Total Preferred Common $ 8,800 s 26,200 $ 35,000 $ 100 S 061 S 26.400s op $ 26,400 S 300 $ 0.00 $ 26,400 s 64,400 $ 90,800 $ 300 $ 150 s Required Required 2 > 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 eBook ASK 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.) Prat References 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 kertain to entero wherever required.) AMOUNT OF DOLLAR INCREASE (DECREASE) Cash Dividend Case C Stock Dividend Item Assets Liabilities Stockholders' equity
