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:
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, $64,000; 20Y2, $128,000; 20Y3, $304,000; 20Y4, $368,000; 20Y5, $448,000; and 20Y6, $576,000. 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 4% stock, $100 par, and 100,000 shares of common stock, $10 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". Preferred Dividends Total Preferred Dividends Common Dividends Common Total Dividends Year Dividends Per Share Total Per Share 20Y1 $64,000 64,000 0 0 2012 128,000 128,000 V 0 0 2013 304,000 20Y4 368,000 2015 448,000 2016 576,000 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.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
1 Year 20Y1 Total Dividends 64000 Preferred Dividends 4 of par value per share 40000 shares 100 4 16000 Common Dividends Total Dividends Preferred Div...See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started