Calculate the total dividends and the per-share dividends

Reference no: EM13589086

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, $48,000; 2010, $144,000; 2011, $216,000; 2012, $264,000; 2013, $336,000; and 2014, $420,000. During the entire period ending December 31 of each year, theoutstanding stock of the company was composed of 40,000 shares of cumulative, 3% preferred stock, $100 par, and 100,000 shares of common stock, $25 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	$ 48,000	$48,000	$1.2	$0	$0
2010	1440,000	1440,000	3.6
2011	216,000
2012	264,000
2013	336,000
2014	420,000
			$		$

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 $179 for the preferred stock and $31 for the common stock, 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.

Round your answers to two decimal places.

Preferred stock	%
Common stock	%

Reference no: EM13589086

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