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, $64,000; Year 3, $144,000; Year 4, $158,000; Year 5, $172,000; and Year 6, $188,000.

During the entire period ended December 31 of each year, the outstanding stock of the company was composed of 40,000 shares of cumulative preferred 2% stock, $100 par, and 100,000 shares of common stock, $15 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 provided.

Note: If required, round your answers to two decimal places. If the amount is zero, enter "0".

Preferred and Com pecan Theat ida and Georgia. Pecan Theatre has declared the following six-year period: Year 1,$32.000: Year 2, 4, 158,000; Y 5, $172,000 nd Ye 6, $188,000. During the entire period ended December 31 of each year the outstanding stock of the company was composed of40,000shares of cumulative preferred 2% stock, $100 par, and 100,000 shares of common stock, $15 par Required he total dividends and the per-sha dividends declared of stock for each of the six ye dividends at the begi ng of Ye he data tabul Note: If required, round your answers to two decimal places, if the amount is zero, enter "0". Preferred Divide Divid Total Per Sha Per Sh Year 1 32,000 Year 3 144,000 158,000 Year 6 188,000 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. dividend for preferred Average annual dividend for common 3. Asa rket pr of $125 for the preferred stock and $13 for the stock, det ntage retu hareholders' estment, based dividend per for preferred stock and fo Use the rounded amounts from part 2 i to two dec mputati referred stoc