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 decimalplaces.Average annual dividend for preferredper shareAverage annual dividend for commonper share3. Assuming a market price per share of $179 for the preferred stock and $9 for the common stock, determine the average annual percentage returnon 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%Common stock% Dividends on Preferred and Common StockPecan Theatre Inc. owns and operates movie theaters throughout Florida and Georgia. Pecan Theatre has declared the following annual dividends over asix-year period: Year 1, $24,000; Year 2, $72,000; Year 3, $108,000; Year 4, $138,000; Year 5, $168,000; and Year 6, $216,000. During the entireperiod ending December 31 of each year, the outstanding stock of the company was composed of 20,000 shares of cumulative, 3% preferred stock,$100 par, and 100,000 shares of common stock, $5 par.Required:1. Determine the total dividends and the per-share dividends declared on each class of stock for each of the six years. There were no dividends inгеarrears at the beginning of Year 1. Summarize the data in tabular form. If required, round your answers to two decimal places. If the amount is zero,please enter "0".Preferred DividendsCommon DividendsTotalYearDividendsTotalPer ShareTotalPer Share$ 24,00024,000 v1.20 VYear 1Year 272,00072,0003.60 VYear 3108,000132,000 x5.60 X60,000 v3 V78,000 VYear 4138,0000.78Year 5168,00060,000108,000 v1.0860,000 v3 V156,000 V1.56 VYear 6216,000%24%24

Preferred Dividends Common Dividends Year Total Dividends ($) Total ($) Per Share ($) Total ($)…

2. Determine the average annual dividend per share for each dlass of stock for the six-year period. If required, round your answers to two decimal places. Average annual dividend for preferred per share Average annual dividend for common per share 3. Assuming a market price per share of $179 for the preferred stock and $9 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 % Common stock %

2. Determine the average annual dividend per share for each dlass of stock for the six-year period. If required, round your answers to two decimal places. Average annual dividend for preferred per share Average annual dividend for common per share 3. Assuming a market price per share of $179 for the preferred stock and $9 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 % Common stock %

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A perpetual preferred stock pays a $1.65 annual dividend and has a required return of 5.81%. The value is closest to A. $28.40. B. $31.33. C. $33.79. D. $36.55.
Suppose a stock had an initial price of $50 per share, paid a dividend of $1.05 per share during the year, and had an ending share price of $37. Compute the percentage total return. Enter the answer in 4 decimals e.g. 0.1234.
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Suppose a stock had an initial price of $80 per share, paid a dividend of $.60 per share during the year, and had an ending share price of $88. Compute the percentage total return. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Return on Common Stock You buy a share of The Ludwig Corporation stock for $18.40. You expect it to pay dividends of $1.08, $1.1491, and $1.2226 in Years 1, 2, and 3, respectively, and you expect to sell it at a price of $22.16 at the end of 3 years. a. Calculate the growth rate in dividends. Round your answer to two decimal places. % b. Calculate the expected dividend yield. Round your answer to two decimal places. % c. Assuming that the calculated growth rate is expected to continue, you can add the dividend yield to the expected growth rate to obtain the expected total rate of return. What is this stock's expected total rate of return? (Assume the market is in equilibrium with the required return equal to the expected return.) Do not round intermediate calculations. Round your answer to two decimal places. %
Suppose a stock had an initial price of $56 per share, paid a dividend of $1.60 per share during the year, and had an ending share price of $50. Compute the percentage total return, dividend yield, and capital gains yield. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
Using the data in the table to the right, calculate the return for investing in the stock from January 1 to December 31. Prices are after the dividend has been paid. (Click on the following icon in order to copy its contents into a spreadsheet.) Return for the entire period is %. (Round to two decimal places.) Date Jan 1 Feb 5 May 14 Aug 13 Nov 12 Dec 31 Price $33.88 $30.67 $29.49 $32.38 $39.07 $41.99 Dividend $0.17 $0.17 $0.17 $0.17
d. What would the percentage rate of return be on this common stock investment? Compare this to the rate of return on the warrant computed when the common stock was selling for $55 per share. Note: Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places. Percentage return on stock Percentage return on warrants % %
What is the total percentage return for an investor who purchased a stock for $8.01, received $2.02in dividend payments, and sold the stock for $9.14? Please write your answers as a percentage (e.g. .1234 should be written as 12.34)