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, $32,000; Year 2, $96,000; Year 3, $144,000; Year 4, $176,000; Year 5, $224,000; and Year 6, $288,000. During the entire period ending December 31 of each year, the outstanding stock of the company was composed of 20,000 shares of cumulative, 4% preferred 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 Year 1. Summarize the data in tabular form. If required, round your answers to two decimal places. If the amount is zero, please enter "0".  Preferred Dividends Common Dividends Year Total Dividends Total Per Share Total Per Share Year 1  $ 32,000  $fill in the blank 1 32,000  $fill in the blank 2 1.6  $fill in the blank 3 0  $fill in the blank 4 0  Year 2   96,000  fill in the blank 5 96,000  fill in the blank 6 4.8  fill in the blank 7 0  fill in the blank 8 0  Year 3   144,000  fill in the blank 9  fill in the blank 10  fill in the blank 11  fill in the blank 12  Year 4   176,000  fill in the blank 13  fill in the blank 14  fill in the blank 15  fill in the blank 16  Year 5   224,000  fill in the blank 17  fill in the blank 18  fill in the blank 19  fill in the blank 20  Year 6   288,000  fill in the blank 21  fill in the blank 22  fill in the blank 23  fill in the blank 24   $fill in the blank 25  $fill in the blank 26  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 $fill in the blank 27 per share Average annual dividend for common $fill in the blank 28 per share 3.  Assuming a market price per share of $222 for the preferred stock and $9 for the common stock, determine the average annual percentage return on initial shareholders' investment, based on the average annual dividend per share for preferred stock and for common stock. Round your answers to two decimal places. Preferred stock fill in the blank 29 % Common stock fill in the blank 30 %

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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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, $32,000; Year 2, $96,000; Year 3, $144,000; Year 4, $176,000; Year 5, $224,000; and Year 6, $288,000. During the entire period ending December 31 of each year, the outstanding stock of the company was composed of 20,000 shares of cumulative, 4% preferred 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 Year 1. Summarize the data in tabular form. If required, round your answers to two decimal places. If the amount is zero, please enter "0".  Preferred Dividends Common Dividends Year Total Dividends Total Per Share Total Per Share Year 1  $ 32,000  $fill in the blank 1 32,000  $fill in the blank 2 1.6  $fill in the blank 3 0  $fill in the blank 4 0  Year 2   96,000  fill in the blank 5 96,000  fill in the blank 6 4.8  fill in the blank 7 0  fill in the blank 8 0  Year 3   144,000  fill in the blank 9  fill in the blank 10  fill in the blank 11  fill in the blank 12  Year 4   176,000  fill in the blank 13  fill in the blank 14  fill in the blank 15  fill in the blank 16  Year 5   224,000  fill in the blank 17  fill in the blank 18  fill in the blank 19  fill in the blank 20  Year 6   288,000  fill in the blank 21  fill in the blank 22  fill in the blank 23  fill in the blank 24   $fill in the blank 25  $fill in the blank 26  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 $fill in the blank 27 per share Average annual dividend for common $fill in the blank 28 per share 3.  Assuming a market price per share of $222 for the preferred stock and $9 for the common stock, determine the average annual percentage return on initial shareholders' investment, based on the average annual dividend per share for preferred stock and for common stock. Round your answers to two decimal places. Preferred stock fill in the blank 29 % Common stock fill in the blank 30 %
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