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, $80,000; Year 3, $180,000; Year 4, $230,000; Year 5, $280,000, and Year 6, $350,000. 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 4% stock, $100 par, and 100,000 shares of common stock, 120 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. Preferred Dividends Common Dividends Total Year Dividends Total Total Year 1 $ 40,000 $ 40,000 Year 2 80,000 80,000 DO Year 3 180,000 180,000 Year 4 230,000 100,000 120,000 * 1.2 Year 5 280,000 100,000 C V 190,000 * 1.9 Year 6 350,000 100,000 4 260,000 24 225 LLLL 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. $ 4 per share Average annual dividend for preferred Average annual dividend for common $ 0.95 X per share 3. Assuming a market price per share of $244 for the preferred stock and $25 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. IMEV E Year 5 280,000 190,000 100,000 100,000 Year 6 350,000 260,000 x 2. Determine the average annual dividend per share for each class of stock for the six-year period. If required, round your answers to Average annual dividend for preferred 4 per share Average annual dividend for common Average annual diwidend for common 0.95 x 0.95 X per share 3. Assuming a market price per share of $244 for the preferred stock and $25 for the common stock, determine the average annual percentage retum 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 4.75 X % Dividends Per Share Seventy-Two Inc., a developer of radiology equipment, has stock outstanding as follows: 81,200 shares of cumulative preferred 2% stock, $15 par, and 401,100 shares of $26 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $56,300 ; second year, $76,700 ; third year, $79,700 ; fourth year, $98,300 . Calculate the dividends per share on each dass of stock for each of the four years. Round all answers to two decimal places. If no dividends are paid in a given year, enter 1st Year 2nd Year 3rd Year 4th Year $ al Preferred stock (dividends per share) Common stock (dividends per share) 8 1