Comparing Stock and Cash Dividends Carlos Company had the following stock outstanding and Retained Earnings at December 31, 2015:
Common Stock (par $ 1; outstanding, 490,000 shares). $ 490,000
Preferred Stock, 8% (par $ 10; outstanding, 19,000 shares) 190,000
Retained Earnings 966,000
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 $ 24,000.
Case B: The preferred stock is cumulative; the total amount of 2015 dividends would be $ 24,000. Dividends were not in arrears prior to 2013.
Case C: Same as Case B, except the amount is $ 67,000.
Required:
Compute the amount of 2015 dividends, in total and per share, payable to each class of stockholders for each case. Show computations. Round per-share amounts to two decimal places.