Ritz Company had the following shares outstanding and Retained Earnings at December 31, 2017:
Common shares (500,000 outstanding shares)………………………………………..$500,000
Preferred shares (8 percent; 21,000 outstanding shares)…………………………..210,000
Retained earnings……………………………………………………………………………………..900,000
On December 31, 2017, the board of directors is considering the of a cash to the common and preferred shareholders. No dividends were declared during 2015 or 2016. Three independent cases are assumed:
Case A: The preferred shares are non-cumulative; the total amount of 2017 dividends would be $30,000.
Case B: The preferred shares are cumulative; the total amount of 2017 dividends would be $30,000. Dividends were not in arrears prior to 2015.
Case C: Same as Case B, except the amount is $75,000.
Required:
Compute the amount of dividends, in total and per share, payable to each class of shareholders for each case. Show computations. Round per share amounts to two decimal places.
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