Question
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,
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, $32,000; 20Y2, $64,000; 20Y3, $152,000; 20Y4, $176,000; 20Y5, $224,000; and 20Y6, $280,000. During the entire period ended December 31 of each year, the outstanding stock of the company was composed of 40,000 shares of cumulative, preferred 2% stock, $100 par, and 100,000 shares of common stock, $20 par.
Required:
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 20Y1. Summarize the data in tabular form. If required, round your per share answers to two decimal places. If the amount is zero, please enter "0".
Year | Total Dividends | Preferred Dividends Total | Preferred Dividends Per Share | Common Dividends Total | Common Dividends Per Share |
---|---|---|---|---|---|
20Y1 | $32,000 | $ | $ | $fill in the blank | $fill in the blank |
20Y2 | 64,000 | fill in the blank | fill in the blank | fill in the blank | fill in the blank |
20Y3 | 152,000 | fill in the blank | fill in the blank | fill in the blank | fill in the blank |
20Y4 | 176,000 | fill in the blank | fill in the blank | fill in the blank | fill in the blank |
20Y5 | 224,000 | fill in the blank | fill in the blank | fill in the blank | fill in the blank |
20Y6 | 280,000 | fill in the blank | fill in the blank | fill in the blank | fill in the blank |
Total | $fill in the blank | $fill in the blank |
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.
Line Item Description | Amount |
---|---|
Average annual dividend for preferred | $fill in the blank |
Average annual dividend for common | $fill in the blank |
3. Assuming a market price per share of $182 for the preferred stock and $25 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.
Line Item Description | Percentage |
---|---|
Preferred stock | fill in the blank % |
Common stock | fill in the blank % |
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