2009-10-05_032213_Olympic

2009-10-05_032213_Olympic - each class of stock for the...

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Olympic Theatre Inc. owns and operates movie theaters throughout Texas and California. Olympic Theatre has declared the following annual dividends over a six-year period:2003, $21,000; 2004,$50,000;2005,$15,000;2006,$80,000; and 2008, $140,000. During the entire period, the outstanding stock of the company was composed of 10,000 shares of 4% preferred stock, $75 par, and 100,000 shares of common stock, $10 par. Instruction: 1- Calculate 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 Dividens Common Dividends year Total Dividends Total Per Share Total Per Share 2003 21,000 2004 50,000 2005 15,000 2006 80,000 2007 90,000 2008 140,000 2-Calculate the average annual dividend per share for
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Unformatted text preview: each class of stock for the six- year period 3-Assuming that the. ..... 1. Preferred Dividends Common Dividends Total Year Dividends Total Per Share Total Per Share 2003. ........................... $ 21,000 $21,000 $ 2.10 $ $0 2004. ........................... 50,000 30,000 3.00 20,000 0.20 2005. ........................... 15,000 15,000 1.50 2006. ........................... 80,000 30,000 3.00 50,000 0.50 2007. ........................... 90,000 30,000 3.00 60,000 0.60 2008. ........................... 140,000 30,000 3.00 110,000 .............................. 1.10 $15.60 $2.40 2. Average annual dividend for preferred: $2.60 per share ($15.60/6) Average annual dividend for common: $0.40 per share ($2.40/6) 3. a. 3.25% ($2.60/$80) b. 4.0% ($0.40/$10)...
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