P11-8 (Static) 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 ($8 par value; 35,000 shares outstanding) Preferred stock, 10% ($15 par value; 8,000 shares outstanding) Retained earnings $280,000 120,000 281,000 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 $31,000. Case B: The preferred stock is cumulative; the total amount of all dividends is $36,000. Case C: The preferred stock is cumulative; the total amount of all dividends is $90,000. Required: 1. Compute the amount of dividends, in total and per share, that would be payable to each class of stockholders for each case. 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. Complete this question by entering your answers in the tabs below. Required i 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 certain to enter "0" wherever required.) AMOUNT OF DOLLAR INCREASE (DECREASE) Cash DividendCase C Stock Dividend Item Assets Liabilities Stockholders' equity