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Tower Corporation had the following stock outstanding and Retained Earnings at December 31, 2021: On December 31, 2021, the board of directors is considering the
Tower Corporation had the following stock outstanding and Retained Earnings at December 31, 2021: 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 , and none have been declared yet in 2021. Three independent cases are assumed: Case An The preferred stock is noncumulative; the total amount of 2021 dividends would be $12,800, Case Br The preferred stock in eumulative; the total amount of 2021 dividends would be $13,020. Dividends were not in Case C1 sane al Case B, except the total dividends are $68,000. Required: 1-a. Compute the amount of 2021 dividends, in total that would be payable to each class of stockholders if dividends were declared as described in each case. TIP: Preferred stockholders with cumulative dividends are to be paid dividends for any prior years (in arrears) and for the current year before common stockholders are paid. 1-b. Compute per case, the 2021 dividends per share, payable to each ciass of stockholders. Compute the amount of 2021 dividends, in total that would be payable to each class of stockholders if dividends were declared as described in each case. TIP: Preferred stockholders with cumulative dividends are to be paid dividends for any prior years (in arrears) and for the current year before common stockholders are paid. Compute per case, the 2021 dividends per share, payable to each class of stockholders. (Round your answers to 2 decimal places.)
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