Dividends on Preferred and Common Stock
Love Theatre Inc. owns and operates movie theaters throughout New Mexico and Utah. Love Theatre has declared the following annual dividends over a six-year period: 2009, $30,000; 2010, $90,000; 2011, $135,000; 2012, $165,000; 2013, $218,000; and 2014, $270,000. During the entire period ending December 31 of each year, the outstanding stock of the company was composed of 25,000 shares of cumulative, 3% preferred stock, $100 par, and 100,000 shares of common stock, $10 par.
Required:
1. Calculate 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 on January 1, 2009. Summarize the data in tabular form. If required, round your answers to two decimal places. If the amount is zero, please enter "0".
Preferred Dividends Common Dividends
Year Total
Dividends
Total
Per Share
Total
Per Share 2009 $ 30,000 $ $ $ $ 2010 90,000 2011 135,000 2012 165,000 2013 218,000 2014 270,000 $ $
2. Calculate 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 $ per share Average annual dividend for common $ per share
3. Assuming a market price per share of $172 for the preferred stock and $14 for the common stock, calculate the average annual percentage return on initial shareholders' investment, based on the average annual dividend per share for preferred stock and for common stock.
Round your answers to two decimal places.
Preferred stock % Common stock %
| Dividends on Preferred and Common Stock Love Theatre Inc. owns and operates movie theaters throughout New Mexico and Utah. Love Theatre has declared the following annual dividends over a six-year period: 2009, $30,000; 2010, $90,000; 2011, $135,000; 2012, $165,000; 2013, $218,000; and 2014, $270,000. During the entire period ending December 31 of each year, the outstanding stock of the company was composed of 25,000 shares of cumulative, 3% preferred stock, $100 par, and 100,000 shares of common stock, $10 par. Required: 1. Calculate 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 on January 1, 2009. Summarize the data in tabular form. If required, round your answers to two decimal places. If the amount is zero, please enter "0".
2. Calculate 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.
3. Assuming a market price per share of $172 for the preferred stock and $14 for the common stock, calculate the average annual percentage return on initial shareholders' investment, based on the average annual dividend per share for preferred stock and for common stock. Round your answers to two decimal places.
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Related questions
Dividends on Preferred and Common Stock
Love Theatre Inc. owns and operates movie theaters throughoutNew Mexico and Utah. Love Theatre has declared the following annualdividends over a six-year period: 2009, $20,000; 2010, $60,000;2011, $100,000; 2012, $115,000; 2013, $150,000; and 2014, $175,000.During the entire period ending December 31 of each year, theoutstanding stock of the company was composed of 25,000 shares ofcumulative, 2% preferred stock, $100 par, and 100,000 shares ofcommon stock, $15 par.
Required:
1. Calculate the total dividends and theper-share dividends declared on each class of stock for each of thesix years. There were no dividends in arrears on January 1, 2009.Summarize the data in tabular form. If required, round your answersto two decimal places. If the amount is zero, please enter "0".
| Preferred Dividends | Common Dividends | ||||||||||||||||||||
| Year | Total Dividends | Total | Per Share | Total | Per Share | ||||||||||||||||
| 2009 | $ 20,000 | $ | $ | $ | $ | ||||||||||||||||
| 2010 | 60,000 | ||||||||||||||||||||
| 2011 | 100,000 | ||||||||||||||||||||
| 2012 | 115,000 | ||||||||||||||||||||
| 2013 | 150,000 | ||||||||||||||||||||
| 2014 | 175,000 | ||||||||||||||||||||
| $ | $ | ||||||||||||||||||||
2. Calculate the average annual dividend pershare for each class of stock for the six-year period. If required,round your answers to two decimal places.
| Average annual dividend for preferred | $ per share |
| Average annual dividend for common | $ per share |
3. Assuming a market price per share of $125for the preferred stock and $21 for the common stock, calculate theaverage annual percentage return on initial shareholders'investment, based on the average annual dividend per share forpreferred stock and for common stock.
Round your answers to two decimal places.
| Preferred stock | % |
| Common stock | % |
| Love Theatre Inc. owns and operates movie theaters throughoutNew Mexico and Utah. Love Theatre has declared the following annualdividends over a six-year period: 2009, $20,000; 2010, $60,000;2011, $95,000; 2012, $115,000; 2013, $140,000; and 2014, $180,000.During the entire period ending December 31 of each year, theoutstanding stock of the company was composed of 25,000 shares ofcumulative, 2% preferred stock, $100 par, and 100,000 shares ofcommon stock, $10 par. Required: 1. Calculate the total dividends and theper-share dividends declared on each class of stock for each of thesix years. There were no dividends in arrears on January 1, 2009.Summarize the data in tabular form. If required, round your answersto two decimal places. If the amount is zero, please enter "0".
2. Calculate the average annual dividend pershare for each class of stock for the six-year period. If required,round your answers to two decimal places.
3. Assuming a market price per share of $93 forthe preferred stock and $14 for the common stock, calculate theaverage annual percentage return on initial shareholders'investment, based on the average annual dividend per share forpreferred stock and for common stock. Round your answers to two decimal places.
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