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eBook CI Show Me How 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, $54,000; Year 2, $192,000; Year 3, $304,000; Year 4, $368,000; Year 5, $464,000; and Year 6, $576,000. During the entire period ending December 31 of each year, the outstanding stock of the company was composed of 40,000 shares of cumulative, 4% preferred stock, $100 par, and 100,000 shares of common stock, $25 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 Total Dividends Per Share 64,000 Common Dividends Year Total Total Per Share $ 64,000 1.6 Year 1 0 0 Year 2 4.8 07 o 192,000 304,000 192,000 224,000 Year 3 5.6 X X Year 4 368,000 160,000 4 200,000 2.08 464,000 4 160,000 Year 5 304,000 3.04 4 X Year 6 160,000 576,000 24 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 4 per share Average annual dividend for common X per share
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