How do you figure what the per share amount is for common stock
|
|
|
| Common stock (par $1; outstanding, 560,000 shares) |
$ |
560,000 |
| Preferred stock, 9% (par $10; outstanding, 21,600 shares) |
|
216,000 |
| Retained earnings |
|
906,000 |
|
| 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 $36,000. |
| Case B: |
The preferred stock is cumulative; the total amount of 2013 dividends would be $36,000. Dividends were not in arrears prior to 2011. |
| Case C: |
Same as Case B, except the amount is $81,000. |
| Compute the amount of dividends per share payable to each class of stockholders for each case |
