Ritz Company had the following shares outstanding and retained earnings at December 31, 2012:

The board of directors is considering the distribution of a cash dividend to the two groups of shareholders. No dividends were declared during 2010 or 2011 . Three independent cases are assumed:
Case A: The preferred shares are non-cumulative; the total amount of dividends is \(\$ 25,000\).
Case B: The preferred shares are cumulative; the total amount of dividends is \(\$ 25,000\).
Case C: Same as Case B, except the amount is \(\$ 75,000\).
\section*{Required:}
1. Compute the amount of dividends, in total and per share, payable to each class of shareholders for each case. Show computations.
2. Assume that the company issued a 15 percent common stock dividend on the outstanding common shares when the market value per share was \(\$ 50\). Complete the following comparative schedule, including an explanation of the differences.

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Preferred shares, 8% (par value $25; outstanding, 8,400 shares) Common shares (outstanding, 50.000 shares) Retained earnings $210,000 500,000 900,000