Pecan Theatre Inc. owns and operates movie theaters throughout Florida and Georgia. Pecan Theatre has declared the following annual dividends over a six-year pen 20Y1, $60,000; 2012, $80,000; 2013, $160,000; 2014, $160,000; 20Y5, $170,000; and 2016, $180,000. During the entire period ended December 31 of each year Outstanding stock of the company was composed of-400,000 shares of cumulative, preferred 2% stock, $10 par, and 500,000 shares of common stock, $15 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 2011. Summarize the data in tabular form. If required, round your per share answers to two decimal places. If the amount is zero, please enter Year 20Y1 2012 2013 2014 2015 2016 Total Dividends $60,000 80,000 160,000 160,000 170,000 180,000 Preferred Dividends Total Preferred Dividends Per Share Common Dividends Total Common Dividends Per Share 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 per share Average annual dividend for common 3. Assuming a market price per share of $25.00 for the preferred stock and $22.00 for the common stock, determine the average annual percentage return on initial annual dividend per share (a) for preferred stock and (b) for 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 pen 20Y1, $60,000; 2012, $80,000; 2013, $160,000; 2014, $160,000; 20Y5, $170,000; and 2016, $180,000. During the entire period ended December 31 of each year Outstanding stock of the company was composed of-400,000 shares of cumulative, preferred 2% stock, $10 par, and 500,000 shares of common stock, $15 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 2011. Summarize the data in tabular form. If required, round your per share answers to two decimal places. If the amount is zero, please enter Year 20Y1 2012 2013 2014 2015 2016 Total Dividends $60,000 80,000 160,000 160,000 170,000 180,000 Preferred Dividends Total Preferred Dividends Per Share Common Dividends Total Common Dividends Per Share 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 per share Average annual dividend for common 3. Assuming a market price per share of $25.00 for the preferred stock and $22.00 for the common stock, determine the average annual percentage return on initial annual dividend per share (a) for preferred stock and (b) for common stock.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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, $60,000; 20Y2, $80,000; 20Y3, $160,000; 2004, $160,000; 20Y5, $170,000; and 2016, $180,000. During the entire period ended December 31 of each year, the
outstanding stock of the company was composed of 400,000 shares of cumulative, preferred 2% stock, $10 par, and 500,000 shares of common stock, $15 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 2011. 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".
Total
Year Dividends
20Y1
$60,000
20Y2
80,000
2013
160,000
2014
160,000
2015
170,000
20Y6
180,000
Preferred
Dividends
Total
Preferred
Dividends
Per Share
Average annual dividend for preferred
Average annual dividend for common
Common
Dividends
Total
Common
Dividends
Per Share
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
per share
3. Assuming a market price per share of $25.00 for the preferred stock and $22.00 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.
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