ns and operates movie theaters throughout Florida and Georgia. Pecan Theatre has declared the following annual dividends over a six- year period: Year 1, $80,000; Year 2, $90,000; Year 3, $150,000; Year 4, $150,000; Year 5, $160,000; and Year 6, $180,000. During the entire period ending December 31 of each year, the outstanding stock of the company was composed of 250,000 shares of cumulative, preferred 2% stock, $20 par, and 500,000 shares of common stock, $15 par. Instructions 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 Year 1. Summarize the data in tabular form, using the following column headings:
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: Year 1, $80,000; Year 2, $90,000; Year 3, $150,000; Year 4, $150,000;
Year 5, $160,000; and Year 6, $180,000. During the entire period ending
December 31 of each year, the outstanding stock of the company was composed
of 250,000 shares of cumulative, preferred 2% stock, $20 par, and 500,000 shares
of common stock, $15 par.
Instructions
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 Year 1. Summarize the data in tabular form,
using the following column headings:
Total Preferred Dividends Common Dividends
Year Dividends Total Per Share Total Per Share
Year 1 $80,000
Year 2 90,000
Year 3 150,000
Year 4 150,000
Year 5 160,000
Year 6 180,000
2. Determine the average annual dividend per share for each class of stock for
the six-year period.
3. Assuming a market price per share of $25.00 for the
$17.50 per share for the common stock, determine the average annual
percentage return initial shareholders’ investment, based on the average
annual dividend per share a) for preferred stock and b) for common stock.
![**Question 2**
- Average Annual Dividend for Preferred: [Blank Field]
- Average Annual Dividend for Common: [Blank Field]
**Question 3**
- a. [Blank Field]%
- b. [Blank Field]%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F522ee984-f612-4c0a-901b-a7522528ad49%2Fba0454c6-098a-4702-9d3e-84bf62c0707a%2Fn9mm99r_processed.png&w=3840&q=75)
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