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, $30,000; Year 2, $60,000; Year 3, $135,000; Year 4, $165,000; Year 5, $218,000; and Year 6, $270,000. During the entire period ended December 31 of each year, the outstanding stock of the company was composed of 25,000 shares of cumulative preferred 3% stock, $100 par, and 100,000 shares of common stock, $15 par.

Preferred Dividends

Common Dividends

Year

Total Dividends

Total

Per Share

Total

Per Share

Year 1

$ 30,000

Year 2

60,000

Year 3

135,000

Year 4

165,000

Year 5

218,000

Year 6

270,000

Total:

Total:

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 share
Average annual dividend for common	$fill in the blank 28 per share

3. Assuming a market price per share of $200 for the preferred stock and $21 for the common stock, determine 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	fill in the blank 29 %
Common stock	fill in the blank 30 %