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Common stock (par $1; outstanding, 500,000 shares) $ 500,000 Preferred stock, 8% (par $10; outstanding, 21,000 shares) 210,000 Retained earnings 900,000 On December 31, 2015,

Common stock (par $1; outstanding, 500,000 shares) $ 500,000
Preferred stock, 8% (par $10; outstanding, 21,000 shares) 210,000
Retained earnings 900,000

On December 31, 2015, the board of directors is considering the distribution of a cash dividend to the common and preferred stockholders. No dividends were declared during 2013 or 2014.

Three independent cases are assumed:
Case A:

The preferred stock is noncumulative; the total amount of 2015 dividends would be $30,000.

Case B:

The preferred stock is cumulative; the total amount of 2015 dividends would be $30,000. Dividends were not in arrears prior to 2013.

Case C: Same as Case B, except the amount is $75,000.
Required:
1-a.

Compute the amount of dividends in total payable to each class of stockholders if dividends were declared as described in each case.

image text in transcribed Need help with 1-b

1-b. Compute the amount of dividends per share payable to each class of stockholders if dividends were declared as described in each case. (Round your answers to 2 decimal places.) Case A Case B Case C Preferred Common S 0.00

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