Question

help me answer the ones i got wrong, and help me with numbers

2 and 3

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: 2041, $80,000; 2012, $90,000; 2083, $150,000; 2014, $150,000; 20Y5, $160,000; and 2046, $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 2% stock, $20 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 20Y1. Summarize the data in tabular form. If required, round your answers to two decimal places. If the amount is zero, please enter "O". Preferred Dividends

> what is the answer to the second part fam

Answer 1

Solution 1:

Annual preferred Dividend = 250,000 *$20* 2% = $100,000

		Preferred Dividends			Common Dividends
Year	Total Dividends	Total	Per Share	Total Arrears at year-end	Total	Per Share
20Y1	$80,000	$80,000	$0.32	$20,000	$0	$0.00
20Y2	$90,000	$90,000	$0.36	$10,000	$0	$0.00
20Y3	$150,000	$130,000	$0.52	$0	$20,000	$0.04
20Y4	$150,000	$100,000	$0.40	$0	$50,000	$0.01
20Y5	$160,000	$100,000	$0.40	$0	$60,000	$0.12
20Y6	$180,000	$100,000	$0.40	$0	$80,000	$0.16
Total			$0.40			$0.07

Solution 2:

Average annual Dividend for preferred = ($600,000/ 6) / 250,000 = $0.4 per share (this is absolutely correct)

Average annual Dividend for Common = ($210,000/ 6) / 500,000 = $0.07 per share

Solution 3:

Preferred stock = $0.4 / $25 = 1.60 %

Common stock = $0.07 / $17.5 = 0.40 %