Ritz Company had the following stock outstanding and Retained Earnings at December 31, 2015: Common stock...

Ritz Company had the following stock outstanding and Retained Earnings at December 31, 2015: Common stock (par $1; outstanding, 420,000 shares) $ 420,000 Preferred stock, 8% (par $10; outstanding, 20,200 shares) 202,000 Retained earnings 892,000 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 $22,000. Case B: The preferred stock is cumulative; the total amount of 2015 dividends would be $22,000. Dividends were not in arrears prior to 2013. Case C: Same as Case B, except the amount is $67,000. 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.

	Case A	Case B	Case C
Preferred
Common
Total	$0	$0	$0

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

Expert Solution

ekkarill92 answered 2 years ago

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