Dividends on Preferred and Common Stock
Yosemite Bike Corp. manufactures mountain bikes and distributesthem through retail outlets in California, Oregon, and Washington.Yosemite Bike Corp. has declared the following annual dividendsover a six-year period ended 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, theoutstanding stockof the company was composed of 25,000 shares ofcumulative preferred 2% stock, $90 par, and 100,000 shares ofcommon stock, $4 par.
Required:
1. Determine the total dividends and theper-share dividends declared on each class of stock for each of thesix years. There were no dividends in arrears on January 1, 2009.Summarize the data in tabular form. If required, round your answersto two decimal places. 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 pershare for each class of stock for the six year period. Round youranswers to two decimal places.
Average annual dividend forpreferred stock $ per share Average annual dividend for commonstock $ per share
3. Assuming a market price of $100 for thepreferred stock and $5 for the common stock, calculate the averageannual percentage return on initial shareholders' investment, basedon the average annual dividend per share (a) for preferred stockand (b) for common stock. Round your answers to one decimalplace.
Preferred stock % Common stock %
| Dividends on Preferred and Common Stock Yosemite Bike Corp. manufactures mountain bikes and distributesthem through retail outlets in California, Oregon, and Washington.Yosemite Bike Corp. has declared the following annual dividendsover a six-year period ended 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, theoutstanding stockof the company was composed of 25,000 shares ofcumulative preferred 2% stock, $90 par, and 100,000 shares ofcommon stock, $4 par. Required: 1. Determine the total dividends and theper-share dividends declared on each class of stock for each of thesix years. There were no dividends in arrears on January 1, 2009.Summarize the data in tabular form. If required, round your answersto two decimal places. If the amount is zero, please enter "0".
2. Determine the average annual dividend pershare for each class of stock for the six year period. Round youranswers to two decimal places.
3. Assuming a market price of $100 for thepreferred stock and $5 for the common stock, calculate the averageannual percentage return on initial shareholders' investment, basedon the average annual dividend per share (a) for preferred stockand (b) for common stock. Round your answers to one decimalplace.
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Related questions
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 | % |
| Love Theatre Inc. owns and operates movie theaters throughoutNew Mexico and Utah. Love Theatre has declared the following annualdividends over a six-year period: 2009, $20,000; 2010, $60,000;2011, $95,000; 2012, $115,000; 2013, $140,000; and 2014, $180,000.During the entire period ending December 31 of each year, theoutstanding stock of the company was composed of 25,000 shares ofcumulative, 2% preferred stock, $100 par, and 100,000 shares ofcommon stock, $10 par. Required: 1. Calculate the total dividends and theper-share dividends declared on each class of stock for each of thesix years. There were no dividends in arrears on January 1, 2009.Summarize the data in tabular form. If required, round your answersto two decimal places. If the amount is zero, please enter "0".
2. Calculate the average annual dividend pershare for each class of stock for the six-year period. If required,round your answers to two decimal places.
3. Assuming a market price per share of $93 forthe preferred stock and $14 for the common stock, calculate theaverage annual percentage return on initial shareholders'investment, based on the average annual dividend per share forpreferred stock and for common stock. Round your answers to two decimal places.
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