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$1,$ $$48,000$; $20$Y$2,$ $$96,000$; $20$Y$3,$ $$228,000$; $20$Y$4,$ $$264,000$; $20$Y$5,$ $$336,000$; and $20$Y$6,$ $$420,000.$ 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 $3\%$ stock, $$100$ par, and $100,000$ shares of common stock, $$10$ 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 $"0".$

Year Total

Dividends Preferred

Dividends

Total Preferred

Dividends

Per Share Common

Dividends

Total Common

Dividends

Per Share

$20$Y$1$ $$48,000$ $fill in the blank $1$

$48,000$

$fill in the blank $2$

$0\mathrm{.}45$

$fill in the blank $3$

$fill in the blank $4$

$20$Y$296,000$ fill in the blank $5$

$96,000$

fill in the blank $6$

fill in the blank $7$

fill in the blank $8$

$20$Y$3228,000$ fill in the blank $9$

$216,000$

fill in the blank $10$

fill in the blank $11$

fill in the blank $12$

$20$Y$4264,000$ fill in the blank $13$

$120,000$

fill in the blank $14$

fill in the blank $15$

fill in the blank $16$

$20$Y$5336,000$ fill in the blank $17$

$120,000$

fill in the blank $18$

fill in the blank $19$

fill in the blank $20$

$20$Y$6420,000$ fill in the blank $21$

$120,000$

fill in the blank $22$

fill in the blank $23$

fill in the blank $24$

Total $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.

Line Item Description Amount

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 $$203$ for the preferred stock and $$16$ 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.

Line Item Description Percentage

Preferred stock fill in the blank $29$

$\%$

Common stock fill in the blank $30$

$\%$