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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: 20Y1, $20,000; 20Y2, $40,000; 20Y3, $95,000; 20Y4, $115,000; 20Y5, $140,000; and 20Y6, $180,000. During the entire period ended December 31 of each year, the outstanding stock of the company was composed of 25,000 shares of cumulative, preferred 2% 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 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". Preferred Dividends Common Dividends Total Year Dividends Total Per Share Total Per Share $ 20,000 20,000 v 0.80 V 20Υ1 40,000 V 1.60 V 20Υ2 40,000 90,000 v 3.60 V 20Υ3 95,000 5,000 0.05 20Y4 115,000 50,000 v 65,000 0.65 20Υ5 140,000 50,000 2 90,000 0.90 20Y6 180,000 50,000 2 V 130,000 1.30 12 V 2.9 V 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 2 V per share Average annual dividend for common 0.48 ner share

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, $20,000; 20Y2, $40,000; 20Y3, $95,000; 20Y4, $115,000; 20Y5, $140,000; and 20Y6, $180,000. During the entire period ended December 31 of each year, the outstanding stock of the company was composed of 25,000 shares of cumulative, preferred 2% 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 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". Preferred Dividends Common Dividends Total Year Dividends Total Per Share Total Per Share $ 20,000 20,000 v 0.80 V 20Υ1 40,000 V 1.60 V 20Υ2 40,000 90,000 v 3.60 V 20Υ3 95,000 5,000 0.05 20Y4 115,000 50,000 v 65,000 0.65 20Υ5 140,000 50,000 2 90,000 0.90 20Y6 180,000 50,000 2 V 130,000 1.30 12 V 2.9 V 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 2 V per share Average annual dividend for common 0.48 ner share

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter15: Dividend Policy
Section: Chapter Questions
Problem 5P
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3. Assuming a market price per share of $161 for the preferred stock and $10 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 1.24 Common stock 4.80 X %
Transcribed Image Text:3. Assuming a market price per share of $161 for the preferred stock and $10 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 1.24 Common stock 4.80 X %
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, $20,000; 20Y2, $40,000; 20Y3, $95,000; 20Y4, $115,000; 20Y5, $140,000; and 20Y6, $180,000. During the entire period ended December 31 of each year, the outstanding stock of the company was composed of 25,000 shares of cumulative, preferred 2% 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 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". Preferred Dividends Common Dividends Total Year Dividends Total Per Share Total Per Share 20Υ1 $ 20,000 20,000 0.80 $ 20Υ2 40,000 V 40,000 1.60 95,000 90,000 v 5,000 V 20Υ3 3.60 0.05 50,000 V 65,000 V 20Y4 115,000 0.65 50,000 V 90,000 V 0.90 V 20Υ5 140,000 50,000 130,000 V 20Υ6 180,000 2 1.30 $ 12 $4 2.9 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 2 V per share Average annual dividend for common 0.48 V per share
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, $20,000; 20Y2, $40,000; 20Y3, $95,000; 20Y4, $115,000; 20Y5, $140,000; and 20Y6, $180,000. During the entire period ended December 31 of each year, the outstanding stock of the company was composed of 25,000 shares of cumulative, preferred 2% 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 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". Preferred Dividends Common Dividends Total Year Dividends Total Per Share Total Per Share 20Υ1 $ 20,000 20,000 0.80 $ 20Υ2 40,000 V 40,000 1.60 95,000 90,000 v 5,000 V 20Υ3 3.60 0.05 50,000 V 65,000 V 20Y4 115,000 0.65 50,000 V 90,000 V 0.90 V 20Υ5 140,000 50,000 130,000 V 20Υ6 180,000 2 1.30 $ 12 $4 2.9 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 2 V per share Average annual dividend for common 0.48 V per share
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