Dividends on Preferred and Common StockPecan 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, $32,000; 20Y2, $64,000; 20Y3, $144,000; 20Y4, $176,000; 20Y5, $224,000; and 20Y6, $280,000.During the entire period ended December 31 of each year, the outstanding stock of the company was composed of 40,000 shares of cumulative, preferred 2% stock, $100 par, and 100,000 shares of common stock, $15 par.Required:1. Determine the total dividends and the per-share dividends declared on each class of stock for each of the six years. There were no dividends in arrears at the beginning of 20Y1. Summarize the data in tabular form. If required, round your per share answers to two decimalplaces. If the amount is zero, please enter "0".Preferred DividendsCommon DividendsTotalYearDividendsTotalPer ShareTotalPer Share20Υ1$ 32,000$$20Υ264,00020Υ3144,00020Y4176,00020Υ5224,00020Υ6280,0002. 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 preferred2$per shareAverage annual dividend for common2$per share3. Assuming a market price per share of $159 for the preferred stock and $20 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) forcommon stock.Round your answers to two decimal places.Preferred stock%Common stock%

Cumulative Preferred stock: On this type of investment if dividend not fully paid in any year then…

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, $32,000; 20Y2, $64,000; 20Y3, $144,000; 20Y4, $176,000; 20YS, $224,000; and 20Y6, $280,00 During the entire period ended December 31 of each year, the outstanding stock of the company was composed of 40,000 shares of cumulative, preferred 2% stock, $100 par, and 100,000 shares of common stock, $15 par. Required: 1. Determine the total dividends and the per-share dividends declared on each class 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 decima places. If the amount is zero, please enter "0". Preferred Dividends Common Dividends Total Year Dividends Total Per Share Total Per Share 20Υ1 $ 32,000 20Υ2 64,000 20Y3 144,000 20Υ4 176,000 20Y5 224,000 20Y6 280,000 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 Average annual dividend for common per share 3. Assuming a market price per share of $159 for the preferred stock and $20 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 Common stock

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 22EB: Errol Corporation earned net income of $200,000 this year. The company began the year with 10,000...