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Ritz Company had the following stock outstanding and Retained Earnings at December 31, 2021: Commonstock(par$1;issuedandoutstanding,460,e08shares)Preferredstock,7X(par$10;issuedandoutstanding,20,600shares)RetainedEarnings$460,600286,600 On December 31, 2021, the board of directors is considering
Ritz Company had the following stock outstanding and Retained Earnings at December 31, 2021: Commonstock(par$1;issuedandoutstanding,460,e08shares)Preferredstock,7X(par$10;issuedandoutstanding,20,600shares)RetainedEarnings$460,600286,600 On December 31, 2021, the board of directors is considering the distribution of a cash dividend to the common and preferred stockholders. No dividends were declared during 2019 or 2020 . Three independent cases are assumed: Case A: The preferred stock is noncumulative; the total amount of 2021 dividends mould be 326 , e0e. Case B: The preferred stock is cumulative; the total amount of 2021 dividends mould be 326, eee. Oividends were not in arrears prior to 2019. Case C: Same as Case B, except the amount is 571,000 . 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. 1-b. Compute the amount of dividends per share payable to each class of stockholders if dividends were declared as described in each case
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