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: $20$Y$1,$ $$32,000$; $20$Y$2,$ $$64,000$; $20$Y$3,$ $$144,000$; $20$Y$4,$ $$184,000$; $20$Y$5,$ $$232,000$; and $20$Y$6,$ $$288,000.$ 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, $$100$ par, and $100,000$ shares of common stock, $$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 $20$Y$1.$ Summarize the data in tabular form. If required, round your per share 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

$20$Y$1$ $ $32,000$ $fill in the blank $1$ $fill in the blank $2$ $fill in the blank $3$ $fill in the blank $4$

$20$Y$264,000$ fill in the blank $5$ fill in the blank $6$ fill in the blank $7$ fill in the blank $8$

$20$Y$3144,000$ fill in the blank $9$ fill in the blank $10$ fill in the blank $11$ fill in the blank $12$

$20$Y$4184,000$ fill in the blank $13$ fill in the blank $14$ fill in the blank $15$ fill in the blank $16$

$20$Y$5232,000$ fill in the blank $17$ fill in the blank $18$ fill in the blank $19$ fill in the blank $20$

$20$Y$6288,000$ fill in the blank $21$ fill in the blank $22$ fill in the blank $23$ fill in the blank $24$

$fill in the blank $25$ $fill in the blank $26$

$2.$ 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 $fill in the blank $27$ per share

Average annual dividend for common $fill in the blank $28$ per share

$3.$ Assuming a market price per share of $$169$ for the preferred stock and $$31$ 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 two decimal places.

Preferred stock fill in the blank $29\%$

Common stock fill in the blank $30\%$