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 a six-year period:20Y1, $20,000; 20Y2, $40,000; 20Y3, $90,000; 20Y4, $110,000; 20Y5, $140,000; and 20Y6, $180,000. During the entire period ended December 31 of each year, theoutstanding stock of the company was composed of 25,000 shares of cumulative, preferred 2% stock, $100 par, and 100,000 shares of common stock, $20 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 thebeginning 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".Year20Y120Y2201320Y420Y520Y6TotalDividends$20,00040,00090,000110,000140,000180,000PreferredDividendsTotal20,00040,000PreferredDividendsPer Share$0.81.6CommonDividendsTotalCommonDividendsPer Share2. 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 preferredper shareAverage annual dividend for commonper share

The dividend is declared to the shareholders from the retained earnings of the business. The…

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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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Financial statement data for the current year for Hanz Corp. are as follows: Line Item Description Amount Net income $5,700,000 Preferred dividends $70,000 Average number of common shares outstanding 200,000 The earnings per share for the current year are? a.$28.15 b.$28.50 c.$28.85 d.$0.35
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Suppose the following information is available for Callaway Golf Company for the years 2022 and 2021. (Dollars are in thousands, except share information.) Net sales Net income (loss) Total assets Share information Preferred dividends 2022 Shares outstanding at year-end 67,000,000 2022: $ $1,127,000 2021: 81,486 $ 855,338 0 2021 $1,134,600 66,447 There were 75,640,000 shares outstanding at the end of 2020. (a) 838,078 68,810,000 What was the company's earnings per share for each year? (Round answers to 2 decimal places, e.g. 15.25.) 0
what is the the quick ratio for both years
The following information is available for Jase Company: Market price per share of common stock $25.00 Earnings per share on common stock 1.25 Which of the following statements is correct? a. The price-earnings ratio is 10 and a share of common stock was selling for 125 times the amount of earnings per share at the end of the year. b. The market price per share and the earnings per share are not statistically related to each other. c. The price-earnings ratio is 20 and a share of common stock was selling for 20 times the amount of earnings per share at the end of the year. d. The price-earnings ratio is 5% and a share of common stock was selling for 5% more than the amount of earnings per share at the end of the year.
3. Earnings and Profits. A distribution is made when D, Inc. has assets valued at $500,000 (basis of $300,000), E&P of $80,000, and 10,000 shares of stock out-standing. T receives assets valued at $100,000 (basis of $60,000) for all his D stock (2,000 shares with a basis of $25,000). Compute the corporation’s E&P balance after the exchange if it is treated as (a) a dividend, or as (b) a sale.
Below is the financial data for Arla Inc. for the year ended December 31, 2020: Market price per share... Net Income...... $150.00 $1,750,000 Preferred Dividends declared... $75,000 Average # of common shares....... Dividends per share...... Average common shareholders' equity..... Total assets..... Total Liabilities... Accumulated Other Comprehensive Income..... 100,000 $2.50 10,000,000 $22,500,000 $11,675,000 $185,000 Instructions Calculate the Return on shareholders' equity (use up to 2 decimal places and do not include a % sign)
The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 20Y7, 20Y6, and 20Y5: December 31 20Υ7 20Y6 20Υ5 Total assets $192,000 $173,000 $154,000 Notes payable (8% interest) 60,000 60,000 60,000 Common stock 24,000 24,000 24,000 Preferred 4% stock, $100 par 12.000 12,000 12,000 (no change during year) Retained earnings 70,415 45,870 36,000 The 20Y7 net income was $25,025, and the 20Y6 net income was $10,350. No dividends on common stock were declared between 20Y5 and 20Y7. Preferred dividends were declared and paid in full in 20Y6 and 20Y7. a. Determine the return on total assets, the return on stockholders' equity, and the return on common stockholders' equity for the years 20Y6 and 20Y7. Round percentages to one decimal place. 20Y7 20Υ6 Return on total assets % Return on stockholders' equity Return on common stockholders' equity % b. The profitability ratios indicate that the company's profitability has Since the rate of return on total…
E2.8 (LO 2) (Calculate ratios and evaluate profitability.) The following informat Saputo Inc. for the year ended March 31 (in millions, except share price): Income available for common shareholders Weighted average number of common shares Share price 2021 $625.6 409.8 $37.79 2020 $582.8 400.3 $33.84 Instructions a. Calculate the basic earnings per share and price-earnings ratio for each year. b. Based on your calculations above, how did the company's profitability change from 2020 to 2021? c. When income rose, did the share price increase? How does this affect the price-earnings ratio? d. Do you think investors are more or less optimistic about the company's profitability in the future? OC €
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