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Dividends on Preferred and Common Stock

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, $184,000; 20Y5, $224,000; and 20Y6, $288,000. During the entire period ended December 31 of each year, the outstanding stock of the company was composed of 20,000 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".

Year	Total Dividends	Preferred Dividends Total	Preferred Dividends Per Share	Common Dividends Total	Common Dividends Per Share
20Y1	$32,000
20Y2	64,000
20Y3	152,000
20Y4	184,000
20Y5	224,000
20Y6	288,000
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.

Line Item Description	Amount
Average annual dividend for preferred
Average annual dividend for common

3. Assuming a market price per share of $313 for the preferred stock and $14 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
Common stock