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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 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.

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 9P
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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, $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.
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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