eferred ow Total Year PR 13-1A Dividends on preferred and common stock OBJ.3 Pecan Theatre Inc. owns and operates movie theaters throughout Florida and 40,000 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 1, $150,000; Year 5, $160,000; and Year 6, $180,000. During the entire period ended December 31 of each year, the outstand- How ing stock of the company was composed of 250,000 shares of cumulative, preferred 2% stock, S20 par and 500,000 shares of common stock, 515 par Instructions 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, using the following column headings: Preferred Dividends Common Dividends Dividends Total Per Share Per Share Year 1 $ 80,000 Year 2 90,000 Year 3 150,000 Year 4 150,000 Year 5 160,000 Year 6 180,000 2. Determine the average annual dividend per share for each class of stock for the six- year period 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 share- holders' investment, based on the average annual dividend per share (a) for preferred stock and (b) for common stock. Total