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; 2012, $9,750; 2013, $113,750; 20Y5, $112,500; and 2016, $137,500. During the entire period, the outstanding stock of the company was composed of 25,000 shares of cumulative preferred 2% stock, $85 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 2011. Summarize the data in tabular form. If required, round your per share answers to two decimal places. If the amount Total Year Dividends 20Y1 $24,000 2012 9,750 2013 113,750 2014 97,500 2015 112,500 20Y6 137,500 Preferred Dividends Total 24,000 ✓ Per Share 0.96 ✔ Common Dividends Total ov Per Share 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 X 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 n initial shareholders' investment, based on the average annual dividend per share (A) for preferred stock and (B) for common stock. Round your answers to
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; 2012, $9,750; 2013, $113,750; 20Y5, $112,500; and 2016, $137,500. During the entire period, the outstanding stock of the company was composed of 25,000 shares of cumulative preferred 2% stock, $85 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 2011. Summarize the data in tabular form. If required, round your per share answers to two decimal places. If the amount Total Year Dividends 20Y1 $24,000 2012 9,750 2013 113,750 2014 97,500 2015 112,500 20Y6 137,500 Preferred Dividends Total 24,000 ✓ Per Share 0.96 ✔ Common Dividends Total ov Per Share 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 X 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 n initial shareholders' investment, based on the average annual dividend per share (A) for preferred stock and (B) for common stock. Round your answers to
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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, $9,750; 20Y3, $113,750; 20Y4, $97,500;
20Y5, $112,500; and 20Y6, $137,500. During the entire period, the outstanding stock of the company was composed of 25,000 shares of cumulative preferred 2% stock, $85 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 arrears at the beginning of 20Y1. Summarize the data in tabular form. If required, round your per share answers to two decimal places. If the amount zero, please enter
"0".
Total
Year Dividends
20Y1 $24,000
2012
9,750
20Y3 113,750
20Y4 97,500
20Y5 112,500
20Y6 137,500
Preferred Dividends
Total
24,000 ✔
Per Share
0.96 ✓
Common Dividends
Total
0 ✓
Per Share
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
X 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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