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Michelangelo Inc., a software development firm, has stock outstanding as follows: 30,000 shares of cumulative 3%, preferred stock of $20 par, and 38,000 shares of
Michelangelo Inc., a software development firm, has stock outstanding as follows: 30,000 shares of cumulative 3%, preferred stock of $20 par, and 38,000 shares of $50 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $6, 900; second year, $9, 600; third year, $64, 860; fourth year, $111, 100. Calculate the dividends per share on each class of stock for each of the four years. Round all answers to two decimal places. If no dividends are paid in a given year, enter "0". 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, $144,000; 2014, $184,000; 2015, $224,000; and 2016, $288,000. During the entire period ending December 31 of each year, the outstanding stock of the company was composed of 40,000 shares of cumulative, 2% preferred stock, $100 par, and 100,000 shares of common stock, $25 par. Calculate 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 "0". 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. 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. Assuming a market price per share of $115 for the preferred stock and $29 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
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