Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
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 sixar period: Year 1, 536,000; Year 2, 5108,000: Vear ), 5171,000; Year 4,6198,000 Year 5. $261,000; and Year 6, 315,000. During the entire period ending December 31 of each year, the outstanding stock of the company was composed of 30,000 shares of cumulative, 3% preferred stock, $100 par, and 100,000 shares of common stock, $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 "o". Preferred Dividends Common Dividends Total Per Share $ 36,000 36,000 1.2 Year Dividends Total Per Share Total Year 1 Year 2 108,000 Year 171,000 Year 4 198,000 Year 5 261,000 Year 6 315.000 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 Average annual dividend for preferred per share Average annual dividend for common per share 3. Assuming a market price per share of $221 for the preferred stock and $9 for the common stock, determine the average annual percentage return on initial Preferred Dividends Common Dividends Total Dividends Year Total Per Share Total Per Share Year 1 $ 36,000 $ 36,000 1.2 Year 2 108,000 Year 3 171,000 Year 4 198,000 Year 5 261,000 Year 6 315,000 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 per share Average annual dividend for preferred Average annual dividend for common per share 3. Assuming a market price per share of $221 for the preferred stock and $9 for the common stock, determine the average annual percentage return on initial 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 96 Previous Next Check My Work 2 more Check My Work uses remaining, Submit Assignment for Grad Save and Edt All work saved

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting For Decision Makers

Authors: Peter Atrill

8th Edition

1292099046, 978-1292099040

More Books

Students also viewed these Accounting questions

Question

What steps could a bookstore take to engage in strategic CSR?

Answered: 1 week ago