Flatfish Limited reported the following items in shareholders equity on December 31, 2024:

Share capital: Preferred shares, $5 cumulative dividend, 150,000 shares issued and outstanding $15,000,000

Share capital: Common shares, 750,000 issued and outstanding 30,000,000

Retained earnings 25,000,000

a) No dividends were declared in 2022 or 2023; however, in 2024, cash dividends of $5 million were declared. Calculate how much would be paid to each class of shares. b) Assuming that the number of common shares remained constant throughout 2024, what was the cash dividend per share distributed to the common shareholders? c)Early in 2025, when its common shares were selling at $59 per share, the company declared and distributed a 10% stock dividend. Describe the impact that this declaration will have on the shareholders equity accounts. (Hint: it may be helpful to prepare the journal entry and closing entry related to this transaction.) d)Explain why a company would choose to issue a stock dividend rather than a cash dividend.