Question

Yosemite Bike Corp.manufactures mountain bikes and distributes them through retailoutlets in California, Oregon, and Washington. Yosemite Bike Corp.has declared the following annual dividends over a six-year periodended December 31 of each year: 2009, $24,000; 2010, $10,000; 2011,$126,000; 2012, $100,000; 2013, $125,000; and 2014, $125,000.During the entire period, the outstanding stock of the company wascomposed of 25,000 shares of cumulative preferred 2% stock, $90par, and 100,000 shares of common stock, $4 par.

Required:

1.Determine the total dividends and the per-share dividends declaredon each class of stock for each of the six years. There were nodividends in arrears on January 1, 2009. Summarize the data intabular form. If required, round your answers to two decimalplaces. If the amount is zero, please enter "0".

					PreferredDividends								CommonDividends
Year	Total Dividends				Total				Per Share				Total				Per Share
2009	$24,000				$				$				$				$
2010	10,000
2011	126,000
2012	100,000
2013	125,000
2014	125,000
									$								$

2.Determine the average annual dividend per share for each class ofstock for the six year period. Round your answers to two decimalplaces.

Average annual dividend forpreferred stock	$ per share
Average annual dividend for commonstock	$ per share

3.Assuming a market price of $100 for the preferred stock and $5 forthe common stock, calculate the average annual percentage return oninitial shareholders' investment, based on the average annualdividend per share (a) for preferred stock and (b) for commonstock. Round your answers to one decimal place.

Preferred stock	%
Common stock	%