QL011-4, 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) $280,000 Preferred stock, 10% ($15 par value; 8,000 shares outstanding) 120,000 Retained earnings 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. Show computations. 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. AMOUNT OF DOLLAR INCREASE (DECREASE) Item Cash Dividend-Case C Stock Dividend Assets $ $ Liabilities $ $ Stockholders' equity $ $