DividendsonPreferredandCommon Stock

Sunbird Theatre Inc. owns and operates movie theaters throughout Florida and Georgia. Sunbird Theatre Inc. has declared the following annual dividends over a six-year period: 2011, $20,000; 2012, $36,000; 2013, $70,000; 2014, $90,000; 2015, $102,000 and 2016, $150,000. During the entire period ended December 31 of each year, theoutstanding stockof the company was composed of 100,000 shares of cumulative preferred 1% stock, $30par, and 400,000 shares of common stock, $20 par.

1.Calculate the total dividends and the per-share dividends declared on each class ofstockfor each of the six years. There were no dividendsin arrearson January 1, 2011. 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

Year Total Total Per Share Total Per Share

Dividends

2011 $20,000 $ $ $ $

2012 36,000

2013 70,000

2014 90,000

2015 102,000

2016 150,000 $ $

2.Calculate 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 $37.50 for the preferred stock and $30.00 for the common stock, calculate 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 %

Common stock %