DividendsonPreferredandCommon 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, $80,000; Year 2, $90,000; Year 3, $150,000; Year 4, $150,000; Year 5, $160,000; and Year 6, $180,000. During the entire period ended December 31 of each year, theoutstanding stockof the company was composed of 250,000 shares of cumulative, preferred 2% stock, $20par, and 500,000 shares of common stock, $15 par.

Required:

1.Determine the total dividends and the per-share dividends declared on each class ofstockfor each of the six years. There were no dividendsin arrearsat 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 DividendsCommon Dividends

YearTotal

Dividends

Total

Per Share

Total

Per ShareYear 1$80,000$fill in the blank 1

$fill in the blank 2

$fill in the blank 3

$fill in the blank 4

Year 290,000fill in the blank 5

fill in the blank 6

fill in the blank 7

fill in the blank 8

Year 3150,000fill in the blank 9

fill in the blank 10

fill in the blank 11

fill in the blank 12

Year 4150,000fill in the blank 13

fill in the blank 14

fill in the blank 15

fill in the blank 16

Year 5160,000fill in the blank 17

fill in the blank 18

fill in the blank 19

fill in the blank 20

Year 6180,000fill 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 shareAverage annual dividend for common$fill in the blank 28

per share

3.Assuming a market price per share of $25.00 for the preferred stock and $17.50 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 one decimal place.

Preferred stockfill in the blank 29

%Common stockfill in the blank 30

%