P11-4 Comparing Stock and Cash Dividends LO11-4, 11-6 Calgate Company had the following shares outstanding and retained earnings at the end of the current year: Preferred shares, 48 (par value $15; outstanding, 11,100 shares) Common shares (outstanding, 41,000 shares) Retained earnings $ 166,500 655,000 336,000 The board of directors is considering the distribution of a cash dividend to the two groups of shareholders. No dividends were declared during the previous two years. Three independent cases are assumed: Case A: The preferred shares are non-cumulative; the total amount of dividends is $53,200. Case B: The preferred shares are cumulative; the total amount of dividends is $71,000. Case C: Same as case B, except the amount is $101,500. Required: 1. Compute the amount of dividends, in total and per share, that would be payable to each class of shareholders for each case. (Round "Per share" to 2 decimal places.) Answer is complete but not entirely correct. Preferred Shares Common Shares Case A: Total $ $ 46,540 6,660 0.60 lu Per share $ 1.13 Case B: Total S 19.980 $ 51,020 Per share s 3.00 $ 1.24 Case C: Total Per share s 19,980 $ 3.00 $ 81,520 1.99 2. Assume that the company issued a 9 percent common stock dividend on the outstanding common shares when the market value per share was $25. Complete the following comparative schedule for common shares only. (Enter any decreases to account balances with a minus sign.) Answer is complete but not entirely correct. Item Assets Liabilities Share Amount of Dollar Increase (Decrease) Cash Dividend-Case Stock Dividend $ 101,500 $ $ 0 101,500 $ 0 0 I rs' equity $ ol