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, $36,000; 20Y2, $72,000; 20Y3, $162,000; 20Y4, $207,000; 20Y5, $261,000; and 20Y6, $315,000. During the entire period ended December 31 of each year, the outstanding stock of the company was composed of 30,000 shares of cumulative, preferred 3% stock, $100 par, and 100,000 shares of common stock, $10 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 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".

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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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, $36,000; 20Y2, $72,000; 20Y3, $162,000; 20Y4, $207,000; 20Y5, $261,000; and 20Y6, $315,000. During the entire period
ended December 31 of each year, the outstanding stock of the company was composed of 30,000 shares of cumulative, preferred 3% stock, $100 par,
and 100,000 shares of common stock, $10 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 20Y1. Summarize the data in tabular form. If reguired, round your per share answers to two decimal places. If the amount is
zero, please enter "0".
Preferred Dividends
Common Dividends
Total
Dividends
Year
Total
Per Share
Total
Per Share
20Y1
$36,000
3,600 X
1.2 V
0.
24
1.2 X
20Y2
72,000
72,000
2.4
2.4 X
20Y3
162,000
162,000
5.4
5.4X
20Y4
207,000
9,000 X
3 x
13
117,000
20Y5
261,000
9,000 X
3 x
3 x
171,000
20Y6
315,000
9,000
225,000
6的
%24
%24
%24
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, $36,000; 20Y2, $72,000; 20Y3, $162,000; 20Y4, $207,000; 20Y5, $261,000; and 20Y6, $315,000. During the entire period ended December 31 of each year, the outstanding stock of the company was composed of 30,000 shares of cumulative, preferred 3% stock, $100 par, and 100,000 shares of common stock, $10 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 20Y1. Summarize the data in tabular form. If reguired, round your per share answers to two decimal places. If the amount is zero, please enter "0". Preferred Dividends Common Dividends Total Dividends Year Total Per Share Total Per Share 20Y1 $36,000 3,600 X 1.2 V 0. 24 1.2 X 20Y2 72,000 72,000 2.4 2.4 X 20Y3 162,000 162,000 5.4 5.4X 20Y4 207,000 9,000 X 3 x 13 117,000 20Y5 261,000 9,000 X 3 x 3 x 171,000 20Y6 315,000 9,000 225,000 6的 %24 %24 %24
-ంశాస +
3. Assuming a market price per share of $143 for the preferred stock and $16 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.
Round your answers to two decimal places.
Preferred stock
2.098 X %
Common stock
5.34
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Check My Work
1. Is the preferred stock cumulative or non-cumulative? How will the preferred stock being cumulative or non-cumulative affect the distribution of dividends?
Determine what amount of current dividends the preferred stock should receive per year. Recall the definition of dividends "in arrears".
How much in dividends would each share of preferred stock receive each year? How much in dividends would each share of common stock receive each year?
Pem embor orO
Transcribed Image Text:-ంశాస + 3. Assuming a market price per share of $143 for the preferred stock and $16 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. Round your answers to two decimal places. Preferred stock 2.098 X % Common stock 5.34 Feedback Check My Work 1. Is the preferred stock cumulative or non-cumulative? How will the preferred stock being cumulative or non-cumulative affect the distribution of dividends? Determine what amount of current dividends the preferred stock should receive per year. Recall the definition of dividends "in arrears". How much in dividends would each share of preferred stock receive each year? How much in dividends would each share of common stock receive each year? Pem embor orO
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