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: 20Y1, $48,000; 20Y2, $96,000; 20Y3, $228,000; 20Y4, $276,000; 20Y5, $348,000; and 20Y6, $420,000. During the entire period ended December 31 of each year, theoutstanding stockof the company was composed of 40,000 shares ofcumulative, preferred3% stock, $100par, and 100,000 shares of common stock, $5 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 20Y1. Summarize the data in tabular form. If required, round your answers to two decimal places. If the amount is zero, please enter "0".

Year Total

Dividends

20Y1 $48,000

20Y2 $96,000

20Y3 228,000

20Y4 276,000

20Y5 348,000

20Y6 420,000

Preferred Dividends ???

Common Dividends ???

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 $273 for the preferred stock and $11 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 two decimal places.

Preferred stock% ??

Common stock% ??