Royal Company is currently considering declaring a dividend to its common shareholders, according to one of the following plans: 1. Declare a cash dividend of $15 per share. 2. Declare a 10 percent stock dividend. Royal Company would distribute 1 share of common stock for every 10 shares of common stock currently held. The company’s common stock is currently selling for $50 per share. Royal Company is authorized to issue 100,000 shares of $10 par value common stock. To date, the company has issued 55,000 shares and is currently holding 8,000 shares in treasury stock