Preferred Dividends Common Dividends Year Total Dividends Total Per Share Total Per Share Year 1 $42,500 42,500 0.85 $ 0 0 Year 2 18,000 18,000 0.36 0 0 Year 3 223,500 179,500 3.59 44,000 0.44 Year 4 178,000 80,000 1.60 98,000 0.98 Year 5 222,000 80,000 1.60 142,000 1.42 Year 6 222,000 80,000 1.60 142,000 1.42 9.60 4.26 2. Determine the average annual dividend per share for each class of stock for the six year period. Round your answers to two decimal places. Average annual dividend for preferred stock Average annual dividend for common stock 1.6 per share 0.71 per share 3. Assuming a market price of $100 for the preferred stock and $5 for the common stock, determine the average annual percentage return on initial shareholders' investment, based on the average annual dividend per share (a) for preferred stock and (b) for common stock. Round your answers to one decimal place. Preferred stock 4 X % Common stock 42.8 X %