Tower Corp. had the following stock outstanding and Retained Earnings at December 31, 2015:
Common Stock (par $ 8; outstanding, 30,000 shares).. $ 240,000
Preferred Stock, 8% (par $ 10; outstanding, 6,000 shares) 60,000
Retained Earnings 280,000
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, and none have been declared yet in 2015. Three independent cases are assumed:
Case A: The preferred stock is noncumulative; the total amount of 2015 dividends would be $ 12,600.
Case B: The preferred stock is cumulative; the total amount of 2015 dividends would be $ 14,400. Dividends were not in arrears prior to 2013.
Case C: Same as Case B, except the total dividends are $ 66,000.
Required:
Compute the amount of 2015 dividends, in total and per share, that would be payable to each class of stockholders if dividends were declared as described in each case. Show computations