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, 4% (par value $25; outstanding, 10,100 shares) Retained earnings Common shares (outstanding, 31,000 shares) $ 252,500 605,000 286,000 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: Cose A: The preferred shares are non-cumulative; the total amount of dividends is $51,200. Case B: The preferred shares are cumulative; the total amount of dividends is $61,000. Case C: Same as case B, except the amount is $96.500.