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: Year 1, $40,000; Year 2, $80,000; Year 3, $180,000; Year 4, $220,000; Year 5, $280,000; and Year 6, $360,000. During the entire period ended December 31 of each year, the outstanding stock of the company was composed of 25,000 shares of cumulative preferred 4% stock, $100 par, and 100,000 shares of common stock, $20 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 Year 1. 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 |
||||||||||||||||
| Year 1 | $ 40,000 | $ | $ | $ | $ | ||||||||||||||||
| Year 2 | 80,000 | ||||||||||||||||||||
| Year 3 | 180,000 | ||||||||||||||||||||
| Year 4 | 220,000 | ||||||||||||||||||||
| Year 5 | 280,000 | ||||||||||||||||||||
| Year 6 | 360,000 | ||||||||||||||||||||
| $ | $ | ||||||||||||||||||||
2. Determine 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 $206 for the preferred stock and $25 for the common stock, determine 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 | % |
In: Accounting
Return on Investment, Margin, Turnover
Ready Electronics is facing stiff competition from imported goods. Its operating income margin has been declining steadily for the past several years. The company has been forced to lower prices so that it can maintain its market share. The operating results for the past 3 years are as follows:
Sales: Year 1 $12,000,000, Year 2 $ 9,500,000, Year 3 $9,000,000
Operating income: Year 1 $1,200,000, Year 2 $1,445,000, Year 3 $945,000
Average assets: Year 1 15,000,000, Year 2 15,000,000, Year 3 17,000,000
For the coming year, Ready's president plans to install a JIT purchasing and manufacturing system. She estimates that inventories will be reduced by 70% during the first year of operations, producing a 20% reduction in the average operating assets of the company, which would remain unchanged without the JIT system. She also estimates that sales and operating income will be restored to Year 1 levels because of simultaneous reductions in operating expenses and selling prices. Lower selling prices will allow Ready to expand its market share. (Note: Round all numbers to two decimal places.)
Required: 1. Compute the ROI, margin, and turnover for Years 1, 2, and 3.
Required 2. Conceptual Connection: Suppose that in Year 4 the sales and operating income were achieved as expected, but inventories remained at the same level as in Year 3. Compute the expected ROI, margin, and turnover.
Required 3. Conceptual Connection: Suppose that the sales and net operating income for Year 4 remained the same as in Year 3 but inventory reductions were achieved as projected. Compute the ROI, margin, and turnover.
Required 4. Conceptual Connection: Assume that all expectations for Year 4 were realized. Compute the expected ROI, margin, and turnover.
In: Accounting
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: Year 1, $48,000; Year 2, $96,000; Year 3, $216,000; Year 4, $276,000; Year 5, $336,000; and Year 6, $432,000. During the entire period ended December 31 of each year, the outstanding stock of the company was composed of 40,000 shares of cumulative preferred 3% stock, $100 par, and 100,000 shares of common stock, $10 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 arrearsat the beginning of Year 1. 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 |
||||||||||||||||
| Year 1 | $ 48,000 | $ | $ | $ | $ | ||||||||||||||||
| Year 2 | 96,000 | ||||||||||||||||||||
| Year 3 | 216,000 | ||||||||||||||||||||
| Year 4 | 276,000 | ||||||||||||||||||||
| Year 5 | 336,000 | ||||||||||||||||||||
| Year 6 | 432,000 | ||||||||||||||||||||
| $ | $ | ||||||||||||||||||||
2. Determine 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 $15 for the common stock, determine 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 | % |
In: Accounting
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: Year 1, $20,000; Year 2, $60,000; Year 3, $90,000; Year 4, $110,000; Year 5, $140,000; and Year 6, $180,000. During the entire period ending December 31 of each year, the outstanding stock of the company was composed of 25,000 shares of cumulative, 2% preferred stock, $100 par, and 100,000 shares of common stock, $25 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 Year 1. 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 |
||||||||||||||||
| Year 1 | $ 20,000 | $ | $ | $ | $ | ||||||||||||||||
| Year 2 | 60,000 | ||||||||||||||||||||
| Year 3 | 90,000 | ||||||||||||||||||||
| Year 4 | 110,000 | ||||||||||||||||||||
| Year 5 | 140,000 | ||||||||||||||||||||
| Year 6 | 180,000 | ||||||||||||||||||||
| $ | $ | ||||||||||||||||||||
2. Determine 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 $99 for the preferred stock and $30 for the common stock, determine 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 | % |
In: Accounting
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: Year 1, $32,000; Year 2, $96,000; Year 3, $152,000; Year 4, $184,000; Year 5, $224,000; and Year 6, $280,000. During the entire period ending December 31 of each year, the outstanding stock of the company was composed of 40,000 shares of cumulative, 2% preferred stock, $100 par, and 100,000 shares of common stock, $20 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 Year 1. 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 |
||||||||||||||||
| Year 1 | $ 32,000 | $ | $ | $ | $ | ||||||||||||||||
| Year 2 | 96,000 | ||||||||||||||||||||
| Year 3 | 152,000 | ||||||||||||||||||||
| Year 4 | 184,000 | ||||||||||||||||||||
| Year 5 | 224,000 | ||||||||||||||||||||
| Year 6 | 280,000 | ||||||||||||||||||||
| $ | $ | ||||||||||||||||||||
2. Determine 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 $147 for the preferred stock and $24 for the common stock, determine 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 | % |
In: Accounting
Calculator
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: Year 1, $24,000; Year 2, $72,000; Year 3, $108,000; Year 4, $138,000; Year 5, $168,000; and Year 6, $210,000. During the entire period ending December 31 of each year, the outstanding stock of the company was composed of 30,000 shares of cumulative, 2% preferred stock, $100 par, and 100,000 shares of common stock, $5 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 Year 1. 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 |
||||||||||||||||
| Year 1 | $ 24,000 | $ | $ | $ | $ | ||||||||||||||||
| Year 2 | 72,000 | ||||||||||||||||||||
| Year 3 | 108,000 | ||||||||||||||||||||
| Year 4 | 138,000 | ||||||||||||||||||||
| Year 5 | 168,000 | ||||||||||||||||||||
| Year 6 | 210,000 | ||||||||||||||||||||
| $ | $ | ||||||||||||||||||||
2. Determine 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 $118 for the preferred stock and $9 for the common stock, determine 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 | % |
In: Accounting
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: Year 1, $30,000; Year 2, $90,000; Year 3, $135,000; Year 4, $165,000; Year 5, $210,000; and Year 6, $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, $20 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 Year 1. 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 |
||||||||||||||||
| Year 1 | $ 30,000 | $ | $ | $ | $ | ||||||||||||||||
| Year 2 | 90,000 | ||||||||||||||||||||
| Year 3 | 135,000 | ||||||||||||||||||||
| Year 4 | 165,000 | ||||||||||||||||||||
| Year 5 | 210,000 | ||||||||||||||||||||
| Year 6 | 270,000 | ||||||||||||||||||||
| $ | $ | ||||||||||||||||||||
2. Determine 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 $165 for the preferred stock and $26 for the common stock, determine 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 | % |
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In: Accounting
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: Year 1, $20,000; Year 2, $40,000; Year 3, $90,000; Year 4, $115,000; Year 5, $140,000; and Year 6, $175,000. During the entire period ended December 31 of each year, the outstanding stock of the company was composed of 25,000 shares of cumulative preferred 2% stock, $100 par, and 100,000 shares of common stock, $10 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 Year 1. 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 |
||||||||||||||||
| Year 1 | $ 20,000 | $ | $ | $ | $ | ||||||||||||||||
| Year 2 | 40,000 | ||||||||||||||||||||
| Year 3 | 90,000 | ||||||||||||||||||||
| Year 4 | 115,000 | ||||||||||||||||||||
| Year 5 | 140,000 | ||||||||||||||||||||
| Year 6 | 175,000 | ||||||||||||||||||||
| $ | $ | ||||||||||||||||||||
2. Determine 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 $160 for the preferred stock and $16 for the common stock, determine 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 | % |
In: Accounting
chap 12 - 01
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: Year 1, $40,000; Year 2, $80,000; Year 3, $190,000; Year 4, $220,000; Year 5, $290,000; and Year 6, $350,000. During the entire period ended December 31 of each year, the outstanding stock of the company was composed of 25,000 shares of cumulative preferred 4% stock, $100 par, and 100,000 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 Year 1. 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 |
||||||||||||||||
| Year 1 | $ 40,000 | $ | $ | $ | $ | ||||||||||||||||
| Year 2 | 80,000 | ||||||||||||||||||||
| Year 3 | 190,000 | ||||||||||||||||||||
| Year 4 | 220,000 | ||||||||||||||||||||
| Year 5 | 290,000 | ||||||||||||||||||||
| Year 6 | 350,000 | ||||||||||||||||||||
| $ | $ | ||||||||||||||||||||
2. Determine 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 $313 for the preferred stock and $20 for the common stock, determine 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 | % |
In: Accounting
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: Year 1, $48,000; Year 2, $96,000; Year 3, $216,000; Year 4, $264,000; Year 5, $348,000; and Year 6, $432,000. During the entire period ended December 31 of each year, the outstanding stock of the company was composed of 30,000 shares of cumulative preferred 4% stock, $100 par, and 100,000 shares of common stock, $5 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 Year 1. 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 |
||||||||||||||||
| Year 1 | $ 48,000 | $ | $ | $ | $ | ||||||||||||||||
| Year 2 | 96,000 | ||||||||||||||||||||
| Year 3 | 216,000 | ||||||||||||||||||||
| Year 4 | 264,000 | ||||||||||||||||||||
| Year 5 | 348,000 | ||||||||||||||||||||
| Year 6 | 432,000 | ||||||||||||||||||||
| $ | $ | ||||||||||||||||||||
2. Determine 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 $204 for the preferred stock and $9 for the common stock, determine 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 | % |
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In: Accounting