- Dividends On Preferred And Common Stock Pecan Theatre Inc Owns And Operates Movie Theaters Throughout Florida And Georg 1 (47.46 KiB) Viewed 16 times
- Dividends On Preferred And Common Stock Pecan Theatre Inc Owns And Operates Movie Theaters Throughout Florida And Georg 2 (34 KiB) Viewed 16 times
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, $16,000; 2012, $32,000; 20Y3, $76,000; 20Y4, $92,000; 20Y5, $112,000; and 20Y6, $140,000. 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 2% stock, $100 par, and 100,000 shares of common stock, $25 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 2011. 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 Common Dividends Year 2011 2012 20Y3 2014 20Y5 20Y6 I Total Dividends $ 16,000 32,000 76,000 92,000 112,000 140,000 Total 16,000 ✓ 32,000 56,000 Per Share 0.8 ✔ 1.6 2.8 Total 0 0 Per Share 108 Till 0 0 X X X X 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 X per share Average annual dividend for common X per share
Year 20Y1 2012 2013 2014 2015 2016 Total Dividends $ 16,000 32,000 76,000 92,000 112,000 140,000 Preferred Dividends Total 16,000 32,000 56,000 X Per Share 0.8 ✔ 1.6 V 2.8 X X X Common Dividends Total 0 Per Share 0 TANT 0 X X x X X 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 X per share Average annual dividend for common X per share I 3. Assuming a market price per share of $141 for the preferred stock and $30 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. Preferred stock X% Common stock X%