Question
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 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: 20Y1, $30,000; 20Y2, $60,000; 20Y3, $143,000; 20Y4, $165,000; 20Y5, $210,000; and 20Y6, $270,000. During the entire period ended December 31 of each year, the outstanding stock of the company was composed of 25,000 shares of cumulative, preferred 3% stock, $100 par, and 100,000 shares of common stock, $20 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 20Y1. 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 20Y1 $ 30,000 $fill in the blank 1 30,000 $fill in the blank 2 $fill in the blank 3 0 $fill in the blank 4 0 20Y2 60,000 fill in the blank 5 60,000 fill in the blank 6 fill in the blank 7 0 fill in the blank 8 0 20Y3 143,000 fill in the blank 9 fill in the blank 10 fill in the blank 11 fill in the blank 12 20Y4 165,000 fill in the blank 13 fill in the blank 14 fill in the blank 15 fill in the blank 16 20Y5 210,000 fill in the blank 17 fill in the blank 18 fill in the blank 19 fill in the blank 20 20Y6 270,000 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 $273 for the preferred stock and $24 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 %
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