Calculate the average annual percentage return

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Reference no: EM132479084

Question 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:

Preferred Dividends Common

Dividends Total Dividends Total Per Share Total Per Share

year

2008 $ 28,000

2009 44,000

2010 48,000

2011 60,000

2012 76,000

2013 140,000

Question 2. Calculate the average annual dividend per share for each class of stock for the six-year period.

Question 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.

Reference no: EM132479084

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