Question

Print item Dividends on Preferred and Common Stock Pecan Theatre Inc. owns and operates movie theaters throughout Flonda and Georgia. Pecan Theatre has dedared the folowing annual dvidends over a six year period: Year 1, $36,000, Year 2. $72.000; Year 3, $162.000; Year 4, $198,000; Year 5, $252,000; and Year 6, $315,000. During the entire period ended December 31 of exch year, the outstanding stock of the company was composed of 30,000 shares of cumulative preferred 3% stock, $100 par, and 100,000 shares of common stock, $20 pac Required: 1. Determine the total dvidends Summarize the data in tabular form. If required, round your answers to two decimal and the per-share dividends decared on each dass of stock for each of the six years. There were no dividends in arrears at the beginning of Year places. If the amount is zero, please enter "o Preferred Dividends Total Total Per Share Total Year 1 36,000 7.00 Year 2 2. Determine the average annual dividend per share for each dass of stock for the six-year period. If required, round your answers to two deamal places Average anniual dividend for preferred deredper sha Next All work saved

Answer 1

1. Annual dividend on preferred stock = 30,000 x $ 100 x 3 % = $ 90,000.

		Preferred Dividends		Common Dividends
Year	Total Dividends	Total	Per Share	Total	Per Share
Year 1	$ 36,000	$ 36,000	$ 1.20	0	0
Year 2	72,000	72,000	2.40	0	0
Year 3	162,000	162,000	5.40	0	0
Year 4	198,000	90,000	3.00	108,000	1.08
Year 5	252,000	90,000	3.00	162,000	1.62
Year 6	315,000	90,000	3.00	225,000	2.25
			$ 18.00		$ 4.95

2.

Average Annual Dividend for Preferred Stock	$ 3.00
Average Annual Dividend for Common Stock	0.83

3.

Preferred Stock	1.5 %
Common Stock	3.46%