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 20Y1. 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 Total Year Dividends Total Per Share Total Per Share 20Υ1 $24,000 24,000 20Υ2 9,000 9,000 20Υ3 112,000 112,000 x 20Υ4 90,000 90,000 x 20Y5 110,000 110,000 x 20Y6 135,000 135,000 X 2. Determine the average annual dividend per share for each class of stock for the six-year period. Round your answers to two decimal places. Average annual dividend for preferred stock per share Average annual dividend for common stock per share 3. Assuming a market price of $100 for the preferred stock and $5 for the common stock, determine the average annual percentage return on initial shareholders' inuoct Latoolk tue decimal placeG

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Dividends on Preferred and Common Stock
Yosemite Bike Corp. manufactures mountain bikes and distributes them through retail outlets in California, Oregon, and Washington. Yosemite Bike has declared the
following annual dividends over a six-year period ended December 31 of each year: 20Y1, $24,000; 20Y2, $9,000; 20Y3, $112,000; 20Y4, $90,000; 20Y5, $110,000; and
20Y6, $135,000. During the entire period, the outstanding stock of the company was composed of 25,000 shares of cumulative preferred 2% stock, $80 par, and 100,000
shares of common stock, $4 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 20Y1. 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
Total
Year
Dividends
Total
Per Share
Total
Per Share
20Υ1
$24,000
24,000
$4
20Υ2
9,000
9,000
20Υ3
112,000
112,000 x
20Υ4
90,000
90,000 x
20Υ5
110,000
110,000 x
20Y6
135,000
135,000 x
$4
2. Determine the average annual dividend per share for each class of stock for the six-year period. Round your answers to two decimal places.
Average annual dividend for preferred stock
$
per share
Average annual dividend for common stock
per share
3. Assuming a market price of $100 for the preferred stock and $5 for the common stock, determine 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 vour answers to two decimal places.
Transcribed Image Text:Dividends on Preferred and Common Stock Yosemite Bike Corp. manufactures mountain bikes and distributes them through retail outlets in California, Oregon, and Washington. Yosemite Bike has declared the following annual dividends over a six-year period ended December 31 of each year: 20Y1, $24,000; 20Y2, $9,000; 20Y3, $112,000; 20Y4, $90,000; 20Y5, $110,000; and 20Y6, $135,000. During the entire period, the outstanding stock of the company was composed of 25,000 shares of cumulative preferred 2% stock, $80 par, and 100,000 shares of common stock, $4 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 20Y1. 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 Total Year Dividends Total Per Share Total Per Share 20Υ1 $24,000 24,000 $4 20Υ2 9,000 9,000 20Υ3 112,000 112,000 x 20Υ4 90,000 90,000 x 20Υ5 110,000 110,000 x 20Y6 135,000 135,000 x $4 2. Determine the average annual dividend per share for each class of stock for the six-year period. Round your answers to two decimal places. Average annual dividend for preferred stock $ per share Average annual dividend for common stock per share 3. Assuming a market price of $100 for the preferred stock and $5 for the common stock, determine 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 vour answers to two decimal places.
20Υ1
$24,000
24,000
20Υ2
9,000
9,000
20Υ3
112,000
112,000 x
20Υ4
90,000
90,000 x
20Υ5
110,000
110,000 X
20Y6
135,000
135,000 x
$
2. Determine the average annual dividend per share for each class of stock for the six-year period. Round your answers to two decimal places.
Average annual dividend for preferred stock
per share
Average annual dividend for common stock
per share
3. Assuming a market price of $100 for the preferred stock and $5 for the common stock, determine 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
Transcribed Image Text:20Υ1 $24,000 24,000 20Υ2 9,000 9,000 20Υ3 112,000 112,000 x 20Υ4 90,000 90,000 x 20Υ5 110,000 110,000 X 20Y6 135,000 135,000 x $ 2. Determine the average annual dividend per share for each class of stock for the six-year period. Round your answers to two decimal places. Average annual dividend for preferred stock per share Average annual dividend for common stock per share 3. Assuming a market price of $100 for the preferred stock and $5 for the common stock, determine 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
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