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Ritz Company had the following stock outstanding and Retained Earnings at December 31, 2015: On December 31, 2015, the board of directors is considering the
Ritz Company had the following stock outstanding and Retained Earnings at December 31, 2015: 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 exist24,000. Case B: The preferred stock is cumulative: the total amount of 2015 dividends would be exist24,000. Dividends were not in arrears prior to 2013. Case C: Same as Case B, except the amount is exist69,000. 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. (Round your answers to 2 decimal places.)
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