646 CHAPTER 11 P r oting Shareholders' Equity LO11-4,116 PU Comparing Stack and sh Dividends Calgate Com u d the following shares standing and retained earnings at December 31, 2017 Preferred shares, 4 par value $25; outstanding, 10,000 shares) $250.000 Common shares outstanding, 30.000 shares) 600.000 Retained earings 281,000 The board of directors is considering the distribution of a cash dividend to the two groups of shareholders. No dividends were declared during 2015 or 2016. Three independent cases are assumed Case A: The preferred shares are non-cumulative, the total amount of divider 1.000 Case R. The preferred shares are cumulative; the total amount of dividends is $10,000. Case Ci Same as case B, except the amount is 96,000. Required: 1. Compute the amount of dividends, in total and per share, that would be payable to each class of shareholders for each case. Show computations 2. Assume that the company issued a 10 percent common stock dividend on the outstanding common shares when the market value per share WILS $24. Complete the following comparative schedule for common shares only, including explanation of the differences Amount of Dollar Increase (Decrease) Cash Dividend Case C Stock Dividend item Assets Liabilities Shareholders' equity