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Yukon Bike Corp. manufactures mountain bikes and distributes them through retail outlets in Canada, Montana, Idaho, Oregon, and Washington. Yukon Bike Corp. declared the following annual dividends over a six-year period ending December 3: of each year: Year 1, $24,000; Year 2, $30,000; Year 3, $48,000; Year 4, $132,000; Year 5, $174,000; and Year 6, $216,000. During the entire period, the outstanding stock of the company was composed of 30,000 shares of noncumulative 2% preferred stock, $100 par, and 100,000 shares of common stock, $20 par. Instructions: 1. Determine the total dividends and the per-share dividends declared on each class of stock for each of the six years. Assume that preferred dividends are paid before any common dividends. If required, round your answers to the nearest cent. If the amount is zero, please enter "0". Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Total Dividends $ 24,000 30,000 48,000 132,000 174,000 216,000 Total Preferred Dividends % Per Share per share Total 2. Calculate the average annual dividend per share for each class of stock for the six-year period. If required, round your answers to the nearest cent. Average annual dividend for preferred: Average annual dividend for common: per share Common Dividends Per Share 3. Assuming a market price per share of $73 for the preferred stock and $24 for the common stock, calculate the average annual percentage return on initial shareholders' investment, based on the average annual dividend per share for preferre stock and for common stock. After converting your answer to a percent, round to two decimal places. a. Preferred stock: Common stock Common stock

Yukon Bike Corp. manufactures mountain bikes and distributes them through retail outlets in Canada, Montana, Idaho, Oregon, and Washington. Yukon Bike Corp. declared the following annual dividends over a six-year period ending December 3: of each year: Year 1, $24,000; Year 2, $30,000; Year 3, $48,000; Year 4, $132,000; Year 5, $174,000; and Year 6, $216,000. During the entire period, the outstanding stock of the company was composed of 30,000 shares of noncumulative 2% preferred stock, $100 par, and 100,000 shares of common stock, $20 par. Instructions: 1. Determine the total dividends and the per-share dividends declared on each class of stock for each of the six years. Assume that preferred dividends are paid before any common dividends. If required, round your answers to the nearest cent. If the amount is zero, please enter "0". Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Total Dividends $ 24,000 30,000 48,000 132,000 174,000 216,000 Total Preferred Dividends % Per Share per share Total 2. Calculate the average annual dividend per share for each class of stock for the six-year period. If required, round your answers to the nearest cent. Average annual dividend for preferred: Average annual dividend for common: per share Common Dividends Per Share 3. Assuming a market price per share of $73 for the preferred stock and $24 for the common stock, calculate the average annual percentage return on initial shareholders' investment, based on the average annual dividend per share for preferre stock and for common stock. After converting your answer to a percent, round to two decimal places. a. Preferred stock: Common stock Common stock

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Yukon Bike Corp. manufactures mountain bikes and distributes them through retail outlets in Canada, Montana, Idaho, Oregon, and Washington. Yukon Bike Corp. declared the following annual dividends over a six-year period ending December 31 of each year: Year 1, $24,000; Year 2, $30,000; Year 3, $48,000; Year 4, $132,000; Year 5, $174,000; and Year 6, $216,000. During the entire period, the outstanding stock of the company was composed of 30,000 shares of noncumulative 2% preferred stock, $100 par, and 100,000 shares of common stock, $20 par. Instructions: 1. Determine the total dividends and the per-share dividends declared on each class of stock for each of the six years. Assume that preferred dividends are paid before any common dividends. If required, round your answers to the nearest cent. If the amount is zero, please enter "0". Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Total Dividends $ 24,000 30,000 48,000 132,000 174,000 216,000 Total % Preferred Dividends $ % Per Share 2. Calculate the average annual dividend per share for each class of stock for the six-year period. If required, round your answers to the nearest cent. Average annual dividend for preferred: per share Average annual dividend for common: per share After converting your answer to a percent, round to two decimal places. a. Preferred stock: b. Common stock: Total Common Dividends 3. Assuming a market price per share of $73 for the preferred stock and $24 for the common stock, calculate the average annual percentage return on initial shareholders investment, based on the average annual dividend per share for preferred stock and for common stock. Per Share
Transcribed Image Text:Yukon Bike Corp. manufactures mountain bikes and distributes them through retail outlets in Canada, Montana, Idaho, Oregon, and Washington. Yukon Bike Corp. declared the following annual dividends over a six-year period ending December 31 of each year: Year 1, $24,000; Year 2, $30,000; Year 3, $48,000; Year 4, $132,000; Year 5, $174,000; and Year 6, $216,000. During the entire period, the outstanding stock of the company was composed of 30,000 shares of noncumulative 2% preferred stock, $100 par, and 100,000 shares of common stock, $20 par. Instructions: 1. Determine the total dividends and the per-share dividends declared on each class of stock for each of the six years. Assume that preferred dividends are paid before any common dividends. If required, round your answers to the nearest cent. If the amount is zero, please enter "0". Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Total Dividends $ 24,000 30,000 48,000 132,000 174,000 216,000 Total % Preferred Dividends $ % Per Share 2. Calculate the average annual dividend per share for each class of stock for the six-year period. If required, round your answers to the nearest cent. Average annual dividend for preferred: per share Average annual dividend for common: per share After converting your answer to a percent, round to two decimal places. a. Preferred stock: b. Common stock: Total Common Dividends 3. Assuming a market price per share of $73 for the preferred stock and $24 for the common stock, calculate the average annual percentage return on initial shareholders investment, based on the average annual dividend per share for preferred stock and for common stock. Per Share
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