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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: 20 Y1 ,$60,000;20Y2,$80,000;20Y3,$160,000;20Y4,$160,000;20Y5,$170,000; and 20Y6,$180,000. During the entire period ended December 31 of each year, the outstanding stock of the company was composed of 400,000 shares of cumulative, preferred 2% stock, $10 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 per share answers to two decimal places. If the amount is zero, please enter " 0 ". answers to two decimal places. Average annual dividend for preferred X per share Average annual dividend for common x pershare 3. Assuming a market price per share of $25.00 for the preferred stock and $22.00 for the common stock, determine the average annual percentage return on initial shareholders' investment, based on the average annual dividend per share (a) for preferred stock and (b) for common stock. Round your answers to one decimal place. Preferred stock % Common stock % Fetounk r Clek Mr won 1. Is the preferred stock cumulative or non-cumulative? How will the preferred stock being cumulative of non: cumulative affect the distribution of dividends? Determine what amount of current dividends the preferred stock should receive per year, Recall the definition of dividends "in arrears". How much in dividends would each share of preferred stock recetve each year? How much in dividends would each share of common stock receive each year? 2. Remember you are calculating the average per share for each class of stock, not in total. 3. What would the oreferred and common stockholders receive as a retum on their initial investment based on the

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