Preferred Dividends Common Dividends Total Dividends S 80,000 Total Per Share Total Per Share Year 20Y1 20Y2 90,000 20Y3 150,000 20Y4 150,000 20YS 160,000 20Y6 180,000
Common dividends in 20Y3: $20,000
Dividends on preferred and common stock
Pecan Theatre Inc. owns and operates movie theaters throughout Florida and Georgia. Pecan Theatre has dec;ared the following annual dividends over a six year period: 20Y1, $80,000; 20Y2, $90,000; 2013, $150,000; 20Y4, $150,000; 2015, $160,000; and 2016, $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 29% 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:
2 . Determine the average annual dividend per share for each class of stock for the six year period .
3. Assuming the market price per share of $ 25.00 for live
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