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

Required 

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.  

d. Explain why a company would choose to issue a stock dividend rather than a cash dividend.

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Share capital: Preferred shares, $5 cumulative dividend, 150,000 shares issued and outstanding Share capital: Common shares, 750,000 issued and outstanding Retained earnings $15,000,000 30,000,000 25,000,000