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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, $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, $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 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 20Y1 20Y2 2013 2014 2015 20Y6 Total Dividends $ 32,000 64,000 152,000 184,000 224,000 280,000 Preferred Dividends Total 32,000 ✓ 64,000 ✓ 144,000 ✓ 80,000 ✓ 80,000 ✔ 80,000✔ Per Share % 0.80✔ 1.60 ✔ 3.60 ✓ 2.00✔ 2.00 ✓ 2.00✔ Common Dividends Total o✓ 0 0✔ 8,000 ✓ 104,000✔ 144,000 ✓ Per Share 0 ✓ 0.08 ✓ 1.04 ✔ 1.44 V 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 per share Average annual dividend for common per share 3. Assuming a market price per share of $110 for the preferred stock and $11 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 % Common stock

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, $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, $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 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 20Y1 20Y2 2013 2014 2015 20Y6 Total Dividends $ 32,000 64,000 152,000 184,000 224,000 280,000 Preferred Dividends Total 32,000 ✓ 64,000 ✓ 144,000 ✓ 80,000 ✓ 80,000 ✔ 80,000✔ Per Share % 0.80✔ 1.60 ✔ 3.60 ✓ 2.00✔ 2.00 ✓ 2.00✔ Common Dividends Total o✓ 0 0✔ 8,000 ✓ 104,000✔ 144,000 ✓ Per Share 0 ✓ 0.08 ✓ 1.04 ✔ 1.44 V 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 per share Average annual dividend for common per share 3. Assuming a market price per share of $110 for the preferred stock and $11 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 % Common stock

FINANCIAL ACCOUNTING
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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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, $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, $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 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 20Y1 20Y2 20Y3 20Y4 20Y5 20Y6 Total Dividends $32,000 64,000 152,000 184,000 224,000 280,000 Total 32,000 ✔ 64,000 ✓ Average annual dividend for preferred Average annual dividend for common Preferred stock Preferred Dividends 144,000 80,000 80,000 80,000 Common stock Round your answers to two decimal places. % Per Share % 0.80 1.60 3.60 2.00 2.00 2.00 per share $ per share Total 0 0 Common Dividends 8,000 104,000 144,000 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. Per Share 0 0 0.08 3. Assuming a market price per share of $110 for the preferred stock and $11 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. 1.04 1.44 ✓
Transcribed Image Text: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, $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, $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 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 20Y1 20Y2 20Y3 20Y4 20Y5 20Y6 Total Dividends $32,000 64,000 152,000 184,000 224,000 280,000 Total 32,000 ✔ 64,000 ✓ Average annual dividend for preferred Average annual dividend for common Preferred stock Preferred Dividends 144,000 80,000 80,000 80,000 Common stock Round your answers to two decimal places. % Per Share % 0.80 1.60 3.60 2.00 2.00 2.00 per share $ per share Total 0 0 Common Dividends 8,000 104,000 144,000 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. Per Share 0 0 0.08 3. Assuming a market price per share of $110 for the preferred stock and $11 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. 1.04 1.44 ✓
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