Question: make sure to put the answer in the correct fitting format so the answer is visible to the viewer. thanks Dividends on Preferred and Common

make sure to put the answer in the correct fitting format so the answer is visible to the viewer. thanks  make sure to put the answer in the correct fitting format
so the answer is visible to the viewer. thanks Dividends on Preferred

Dividends on Preferred and Common Stock Pecan Theatre Inc. owns and operates movie theaters throughout Florida and Georgia. Pecan Theatre has declared the following annual dividends over a six-year period: Year 1, $32,000; Year 2, 564,000; Year 3, $144,000; Year 4, $176,000; Year 5, $232,000; and Year 6, $288,000. During the entire period ended December 31 of each year, the outstanding stock of the company was composed of 20,000 shares of cumulative preferred 4% stock, $100 par, and 100,000 shares of common stock, 65 par. Required: 1. Determine the total dividends and the per-share dividends declared on each class of stock for each of the six years. There were no dividends in arrears at the beginning of Year 1. Summarize the data in tabular form. If required, round your answers to two decimal places. If the amount is zero, please enter "0". Preferred Dividends Common Dividends Year Total Dividends Total Per Share Total Per Share Year 1 $ 32,000 32,000 0 o Year 2 64,000 64,000, X o 0 Year 3 144,000 144,000 ov 0 Year 4 176,000 80,000 96,000 0.96 Year 5 232,000 80,000 X Year 6 285,000 80,000 208,000 2.08 2. Determine the average annual dividend per share for each class of stock for the six-year period. If required, round your answers to two decimal places Average annual dividend for preferred X per share Average annual dividend for common X per share 3. Assuming a market price per share of $217 for the preferred stock and $9 for the common stock, determine the average annual percentage return on initial shareholders' Investment, based on the average annual dividend per share for preferred stock and for common stock Round your answers to two decimal places Preferred stock X% Common stock XN

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!