Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help on this section to the homework! if you can please show the work! Love Theatre Inc. owns and operates movie theaters throughout

I need help on this section to the homework! if you can please show the work!

image text in transcribed

Love Theatre Inc. owns and operates movie theaters throughout New Mexico and Utah. Love Theatre has declared the following annual dividends over a six-year period: 2011, $32,000; 2012, $96,000; 2013, $152,000; 2014, $184,000; 2015, $224,000; and 2016, $280,000. During the entire period ending December 31 of each year, the outstanding stock of the company was composed of 20,000 shares of cumulative, 4% preferred stock, $100 par, and 100,000 shares of common stock, $20 par. Required: 1. Cacate 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 on 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 "O" Preferred Dividends Common Dividends Total Year Dividends Total Per Share Total Per Share 0.00 2011 s32,000 32,000 0.8 X 0 96,000 2.4 X 2012 96,000 0 0.00 | 0.40 2013 152,000 3 X 40,000 112,000 80,000 V 2014 184,000 3 X 104,000 1.04 144,000 2015 224,000 80,000 1.44 2.0 280,000 2016 80,000 200,000 27.2 4.88 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. 1.867X per share Average annual dividend for preferred Average annual dividend for common 0.867 X per share 3. Assuming a market price per share of $274 for the preferred stock and $26 for the common stock, calculate the average annual percentage return 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 16.87 % Common stock 19.471 x %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Electronic Health Records An Audit And Internal Control Guide

Authors: Rebecca S. Busch

1st Edition

0470258209, 978-0470258200

More Books

Students also viewed these Accounting questions