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Business, 23.04.2020 19:24 NeVaRkLoE

Ritz Company had the following stock outstanding and Retained Earnings at December 31, 2013:

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, 2013, the board of directors is considering the distribution of a cash dividend to the common and preferred stockholders. No dividends were declared during 2011 or 2012. Three independent cases are assumed:

Case A: The preferred stock is noncumulative; the total amount of 2013 dividends would be $30,000.
Case B: The preferred stock is cumulative; the total amount of 2013 dividends would be $30,000. Dividends were not in arrears prior to 2011.
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 for each case.
1-b. Compute the amount of dividends per share payable to each class of stockholders for each case. (Round your answers to 2 decimal places.)
2. Complete the following schedule, which compares case C to a 100 percent stock dividend on the outstanding common shares when the stock price was $50. (Select "NE" if there is no effect.)

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Ritz Company had the following stock outstanding and Retained Earnings at December 31, 2013:
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