During the entire period, the outstand stock of the company was composed of 10,000 shares of 4% preferred stock, $50 par, and 25,000 shares of common stock, $1 par.
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.
2. Calculate the average annual dividend per share for each class of stock for the six-year period. Round to the nearest cent.
3. Assuming that the preferred stock was sold at $86 and common stock was sold at $22.75 at the beginning of the six year period, calculate the average annual percentage return on inital shareholders' investment, based on the average annual dividend per share a) for preferred stock and b) for common stock.