Theatre Inc. owns and operates movie theaters throughout Florida and Georgia·Pec

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Theatre Inc. owns and operates movie theaters throughout Florida and Georgia·Pecan Theatre has deared be elong anal emera otra pecan year period: Year 1, S24,000; Year 2·$48,000; Year 3, $114,000; Year 4, S132,000, wear s, $168,000; and Year6, $216,000. bringtheenie pros December 31 of each year, the outstanding stock ofthe company was composed of 20,000 shares of amiative preferred 3% stock, $100 par and 100,000 shares of common stock, $25 par 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 Year 1. Summarize the data in tabular form. If required, round your answers to two decimal places. if the amount is zero, please enter Preferred Dividends Common Dividends Total Per Share Total Per Share 24,000 1.21V Year 124,000 Year 2 48,000 48,000 Year 3 24 V Year S 168,000 Year 6 216,000 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 Average annual dividend for common per share per share 8

Explanation / Answer

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Answer to Part 1 Year Total Dividends Preferred Dividends Common Dividends Total Per Share Total Per share 1 $          24,000.00 $         24,000.00 $                      1.20 $                        -   $                     -   2 $          48,000.00 $         48,000.00 $                      2.40 $                        -   $                     -   3 $       1,14,000.00 $      1,08,000.00 $                      5.40 $             6,000.00 $                 0.06 4 $       1,32,000.00 $         60,000.00 $                      3.00 $           72,000.00 $                 0.72 5 $       1,68,000.00 $         60,000.00 $                      3.00 $        1,08,000.00 $                 1.08 6 $       2,16,000.00 $         60,000.00 $                      3.00 $        1,56,000.00 $                 1.56 Total $                    18.00 $                 3.42 Computation of Prefred Stock Dividend Dividend Op. Arrear Total Payable Paid Arrear Year 1 $                60,000.00 $                               -   $                     60,000.00 $                   24,000.00 $              36,000.00 Year 2 $                60,000.00 $                36,000.00 $                     96,000.00 $                   48,000.00 $              48,000.00 Year 3 $                60,000.00 $                48,000.00 $                  1,08,000.00 $               1,08,000.00 $                             -   Year 4 $                60,000.00 $                               -   $                     60,000.00 $                   60,000.00 $                             -   Year 5 $                60,000.00 $                               -   $                     60,000.00 $                   60,000.00 $                             -   Year 6 $                60,000.00 $                               -   $                     60,000.00 $                   60,000.00 $                             -   Answer to Part 2 Preferred Stock = $ 18/6 = $ 3 Common Stock = $ 3.42/6 = $ 0.57 Answer to Part 3 Preferred stock = $3 * 100 / $157 = 1.91% Common Stock = $0.57 * 100 / $30 = 1.90%

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