Reference no: EM132035387

Questions -

1. Determine the total dividends and the per-share dividends declared on each class of stock for each of the six years. Summarize the data in tabular form, using the following column headings: Year Total Dividends Preferred Dividends Common Dividends Total Per Share Total Per Share Year 1 $ 28,000 Year 2 44,000 Year 3 48,000 Year 4 60,000 Year 5 76,000 Year 6 140,000

2. Calculate the average annual dividend per share for each class of stock for the six-year period. 3. Assuming that the preferred stock was sold at $57.50 and common stock was sold at $5.00 at the beginning of the six-year period, calculate 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.