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Obj. 2 PR 12-1A 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, $80,000; 20Y2, $90,000; 20Y3, $150,000; 20Y4, $150,000; 20Y5, $160,000; and 20Y6, $180,000. During the entire period ended 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 20Y1. Summarize the data in tabular form, using the following column headings: Preferred Dividends Common Dividends Total Dividends Year Total Per Share Total Per Share 20Υ1 $ 80,000 20Υ2 90,000 20Υ3 150,000 20Υ4 150,000 20Y5 160,000 20Υ6 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 preferred stock and $17.50 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.

Obj. 2 PR 12-1A 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, $80,000; 20Y2, $90,000; 20Y3, $150,000; 20Y4, $150,000; 20Y5, $160,000; and 20Y6, $180,000. During the entire period ended 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 20Y1. Summarize the data in tabular form, using the following column headings: Preferred Dividends Common Dividends Total Dividends Year Total Per Share Total Per Share 20Υ1 $ 80,000 20Υ2 90,000 20Υ3 150,000 20Υ4 150,000 20Y5 160,000 20Υ6 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 preferred stock and $17.50 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.

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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%3D 384,000 7,200,000 71,684,000 Elosing (net income) Dec. 31 June 30 Sept. 30 69,000 69,000 Dividend 3,780,000 Dividend Dec. 31 Dividend 69,000 1,008.000 14,879,000 Dec. 31 Balance e authorized. There are Julv 31, the end of the Obj. 6 e following results for Problems: Series A Obj. 2 PR 12-1A 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, $80,000; 20Y2, $90,000; 20Y3, $150,000; 20Y4, $150,000; 20Y5, $160,000; and 20Y6, $180,000. During the entire period ended 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. $59,650,000 8,160,000 V 1. Common dividends in 20Y3: $20,000 1,000,000 2,600,000 13. EXCEL TEMPLATE Obj. 6 sheet prepared as of SHOW ME HOW 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 20Y1. Summarize the data in tabular form, using the following column headings: Preferred Dividends Common Dividends Total Dividends Year Total Per Share Total Per Share 20Υ1 $ 80,000 20Y2 90,000 10,500,000 20Υ3 150.000 96,700,000 20Υ4 150.000 1,755,000 20Y5 160,000 430,000 20Y6 180,000 09,385,000 2. Determine the average annual dividend per share for each class of stock for the six-year period. 7,655,000 3. Assuming a market price per share of $25.00 for the preferred stock and $17.50 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. 300,000 7340,000
Transcribed Image Text:%3D 384,000 7,200,000 71,684,000 Elosing (net income) Dec. 31 June 30 Sept. 30 69,000 69,000 Dividend 3,780,000 Dividend Dec. 31 Dividend 69,000 1,008.000 14,879,000 Dec. 31 Balance e authorized. There are Julv 31, the end of the Obj. 6 e following results for Problems: Series A Obj. 2 PR 12-1A 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, $80,000; 20Y2, $90,000; 20Y3, $150,000; 20Y4, $150,000; 20Y5, $160,000; and 20Y6, $180,000. During the entire period ended 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. $59,650,000 8,160,000 V 1. Common dividends in 20Y3: $20,000 1,000,000 2,600,000 13. EXCEL TEMPLATE Obj. 6 sheet prepared as of SHOW ME HOW 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 20Y1. Summarize the data in tabular form, using the following column headings: Preferred Dividends Common Dividends Total Dividends Year Total Per Share Total Per Share 20Υ1 $ 80,000 20Y2 90,000 10,500,000 20Υ3 150.000 96,700,000 20Υ4 150.000 1,755,000 20Y5 160,000 430,000 20Y6 180,000 09,385,000 2. Determine the average annual dividend per share for each class of stock for the six-year period. 7,655,000 3. Assuming a market price per share of $25.00 for the preferred stock and $17.50 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. 300,000 7340,000
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