Chicago Company reported the following information at the end of this year:
Common Stock ($5 par value; 47,000 shares outstanding)  ps  235.000 
Preferred Stock, 10% ($12 par value; 9,600 shares outstanding)  115,200  
Retained earnings  289,000  
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. Suppose the following three cases are independent of each other.
Case A : The preferred stock is not cumulative; the total amount of all dividends is $39,000.
Case B : Preference shares are cumulative; the total amount of all dividends is $34,560.
Case C : Preference shares are cumulative; the total amount of all dividends is $91,600.
Required:
1. Calculate the amount of dividends, in total and per share, that would be payable to each class of shareholders for each case. (Round “Dividends per share” to 2 decimal places.)
2 Suppose the Chicago Company issued a common stock dividend of 30 percent on the shares outstanding when the market value per share was $24. Complete the table below to show how this stock dividend would compare to Case C.
