Answered: Preferred Dividends Common Dividends… | bartleby

Cornerstones of Financial Accounting

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 99.5C

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Question

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 preferred stock and $17.50 for the common stock, determine the annual avaerage percentage return on initial share holders investment, based on the annual average divident per share (a) for preffered stock and (B) for common stock.

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

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Preferred stock Par value Sale price Flotationcost Annual dividend A $ 100 $ 101 $ 9.00 11% B 40 38 $ 3.50 8% C 35 37 $ 4.00 $ 5.00 D 30 26 5% of par $ 3.00 E 20 20 $ 2.50 9% Stock E Par value $ 20 Sale price $ 20 Flotation cost $ 2.50 Annual dividend 9% Dividend payment Proceed from sale Cost of preferred stock By using cell references to the given data calucalte the dividend payment of preferred stock E. By using cell references to the given data calculate the proceeds from sale of preferred stock E. By using cell references to the given data calculate the cost of preferred stock E.
Preferred stock Par value Sale price Flotationcost Annual dividend A $ 100 $ 101 $ 9.00 11% B 40 38 $ 3.50 8% C 35 37 $ 4.00 $ 5.00 D 30 26 5% of par $ 3.00 E 20 20 $ 2.50 9% Stock C Par value $ 35 Sale price $ 37 Flotation cost $ 4.00 Annual dividend $ 5.00 Proceed from sale Cost of preferred stock By using cell references to the given data calculate the proceeds from sale of preferred stock C. By using cell references to the given data calucalte the cost of preferred stock C.
What is the total stockholder's equity basedon Common stock 37500 Paid in capital 90000 retained earrings 190000 treasury stock 15000
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Determine the cost of capital for a company if it sells P500.00, 10% dividend preferred stocks at 7.5% discount. (Ans.10.81%)
Preferred stock Par value Sale price Flotationcost Annual dividend A $ 100 $ 101 $ 9.00 11% B 40 38 $ 3.50 8% C 35 37 $ 4.00 $ 5.00 D 30 26 5% of par $ 3.00 E 20 20 $ 2.50 9% Solution Stock A Par value $ 100 Sale price $ 101 Flotation cost $ 9.00 Annual dividend 11% Dividend payment Proceed from sale Cost of preferred stock By using cell references to the given data calculate the proceeds from sale of preferred stock A
Preferred stock Par value Sale price Flotationcost Annual dividend A $ 100 $ 101 $ 9.00 11% B 40 38 $ 3.50 8% C 35 37 $ 4.00 $ 5.00 D 30 26 5% of par $ 3.00 E 20 20 $ 2.50 9% Stock D Par value $ 30 Sale price $ 26 Flotation cost (% of par) 5% Flotation cost Annual dividend $ 3.00 Proceed from sale Cost of preferred stock By using cell references to the given data calculate the flotation cost of preferred stock D. By using cell references to the given data calculate the proceeds from sale of preferred stock D. By using cell references to the given data calculate the cost of preferred stock D.
23) What is the total return of an equal-weighted index over the holding period given the following data set? Stock Beginning Share Price # of shares outstanding Dividends (per share) Ending Share Price A 44 3 560 000 0 47 B 65 6 850 000 6.9 62 C 25 18 100 000 3.1 22
Preferred stock Par value Sale price Flotationcost Annual dividend A $ 100 $ 101 $ 9.00 11% B 40 38 $ 3.50 8% C 35 37 $ 4.00 $ 5.00 D 30 26 5% of par $ 3.00 E 20 20 $ 2.50 9% Solution Stock A Par value $ 100 Sale price $ 101 Flotation cost $ 9.00 Annual dividend 11% Dividend payment Proceed from sale Cost of preferred stock By using cell references calcualte the cost of preferred stock A
PROVIDE COMPUTATIONS!!! 10. What is the book value of the preference shares on December 31, 2018?a. P105 c. P100b. P110 d. P11511. What is the book value of the ordinary shares on December31 2018?a. P13.40 c. P14.15b. P14.52 d. P13.78
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BE4.8 In 2020, Jollis corporation reported net income of $1000000. it declared and paid perferred stock dividends of $250000. During 2020, Hollis had weighted average of 190000 common shares outstanding. Compute Hollis's 2020 earnings per share.

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