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.
Compute the amount of dividends, in total and par share, that would be payable to each class of stockholders for each case. (Round “Dividends per Share” to 2 decimal places.)
Dividends Dividends par Share
Preferred Common Total Preferred Common