Chicago Company reported the following information at the end of the current year: ...
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Accounting
Chicago Company reported the following information at the end of the current year:
Common stock ( $10 par value; 46,000 shares outstanding)
$
460,000
Preferred stock, 15% ( $10 par value; 9,100 shares outstanding)
91,000
Retained earnings
286,500
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 $36,500.
Case B: The preferred stock is cumulative; the total amount of all dividends is $40,950.
Case C: The preferred stock is cumulative; the total amount of all dividends is $91,100 .
Required:
1. Compute the amount of dividends, in total and per share, that would be payable to each class of stockholders for each case. (Round "Dividends per Share" to 2 decimal places.)
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