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, $40,000; Year 2, $120,000; Year 3, $180,000; Year 4, $220,000; Year 5, $290,000; and Year 6, $350,000. During the entire period ending December 31 of each year, the outstanding stock of the company was composed of 25,000 shares of cumulative, 4% preferred 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 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".

Dividends on Preferred and Common Stock Pecan Theatre Inc owns and operates movie theaters throughout Florida and Georgia. Pucan Theatre has declared the following annual dividends over a sweyear periodi Year 1, \$40,000; Year 2, \$120,000; Year 3, \$180,000; Year 4, \$220,000; Year 5, \$290,000; and Year 6, \$350,000. During the entire period encing Dectriber 31 of cach year, the outstanding stock of the company was composed of 25,000 shaces of cumulative, 4% preforred stock, 5100 par, and 100,000 shares of comman stock, $20 pari Required: 1. Determine the total dividends and the per-share dividends declared on each class of stock for each of the six yean. There were no ovidends in ambirs 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 anter "or: 2. Determine the averoge annual dividend per share for each class of stock for the sweyear period. If required, round your answers to tow decimal placon Average annual dividend for preferred Average annual dividend for cammon per share 1 per share 2. Determine the average annual dividend per share for each class of stock for the six-year period. If required, round your answers to tivo decimal placess Avernge annual dividend for preferred Average annual dividend for common per share per share 3. Assuming a market price per share of $345 for the preferred stock and $16 for the common stock, determine the average annual percentage raturn on shareholders' investment, based on the average annual dividend per share for preferred stock and for common stock. Round your answers to two decimal places. Preferred stock Common stock