value 1.34 points Carlos Company had the following stock outstanding and Retaine

Question

value 1.34 points Carlos Company had the following stock outstanding and Retained Earnings at December 31, 2015 $ 430,000 Common Stock (par $1, outstanding, 430,000 shares) Preferred Stock, 9% (par S10, outstanding, 18,400 shares) Retained Earnings 184,000 960,000 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 $18,000 Case B: The preferred stock is cumulative; the total amount of 2015 dividends would be $18,000 Dividends were not in arrears prior to 2013 Same as Case B, except the amount is $61,000 Case C. Required 1-a. Compute the amount of 2015 dividends, in total, that would be payable to each class of stockholders it dividends were declared as described in each case Case A Case B Case C Preferred Common Total 1-b. Compute the amount of 2015 dividends per share payable to each class of stockholders for each case. (Round your answers to 2 decimal places.) Case A Case B Case C Preferred Common

Explanation / Answer

1. Compute amount of 2015 dividend :

Compute amount of dividend per share :

Case A Case B Case C Preferred 16560 18000 49680 Common 1440 0 11320 Total 18000 18000 61000

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