survey of accounting 6th edition chapter 8 problem 5
Yukon Bike Corp. manufactures mountain bikes and distributesthem through retail outlets in canada, montana, idaho, oregon, andwashington. Yukon Bike Corp. has declared the following annualdividends over a sex-year period ending dec. 31 of each year.during the entire period, the outstanding stock of the company wascomposed of 40000 shares of 2% preferred stock, $65 par, and 50000shares of common stock, $1 par.
Determine the total dividends and the pershare dividendsdeclared on each class of stock for each of the six years.
Calculate the average annual dividend per share for each classof stock for the six year period.
Assuiming that the perferred stock was sold at $57.50 and commonstock was sold at $5 at the beginning of the six yea period,calculate the average annual % return on initial shareholders'investment, based on the average annual dividend per share (a) forpreferred stock and (b) for common stock.
1. Maximum yearly total preferred dividend: Preferred Dividends Common Dividends Total Year Dividends Total Per Share Total Per Share 2008 $ 28,000 $28,000 $0.00 2009 44,000 44,000 0.00 2010 48,000 48,000 0.00 2011 60,000 2012 76,000 2013 140,000 2. Average annual dividend for preferred: Average annual dividend for common: 3. a. Return on initial investment, preferred: b. Return on initial investment, common:
survey of accounting 6th edition chapter 8 problem 5
Yukon Bike Corp. manufactures mountain bikes and distributesthem through retail outlets in canada, montana, idaho, oregon, andwashington. Yukon Bike Corp. has declared the following annualdividends over a sex-year period ending dec. 31 of each year.during the entire period, the outstanding stock of the company wascomposed of 40000 shares of 2% preferred stock, $65 par, and 50000shares of common stock, $1 par.
Determine the total dividends and the pershare dividendsdeclared on each class of stock for each of the six years.
Calculate the average annual dividend per share for each classof stock for the six year period.
Assuiming that the perferred stock was sold at $57.50 and commonstock was sold at $5 at the beginning of the six yea period,calculate the average annual % return on initial shareholders'investment, based on the average annual dividend per share (a) forpreferred stock and (b) for common stock.
| 1. | |||||||||||||||||
| Maximum yearly total preferred dividend: | |||||||||||||||||
| Preferred Dividends | Common Dividends | ||||||||||||||||
| Total | |||||||||||||||||
| Year | Dividends | Total | Per Share | Total | Per Share | ||||||||||||
| 2008 | $ 28,000 | $28,000 | $0.00 | ||||||||||||||
| 2009 | 44,000 | 44,000 | 0.00 | ||||||||||||||
| 2010 | 48,000 | 48,000 | 0.00 | ||||||||||||||
| 2011 | 60,000 | ||||||||||||||||
| 2012 | 76,000 | ||||||||||||||||
| 2013 | 140,000 | ||||||||||||||||
| 2. | |||||||||||||||||
| Average annual dividend for preferred: | |||||||||||||||||
| Average annual dividend for common: | |||||||||||||||||
| 3. a. | Return on initial investment, preferred: | ||||||||||||||||
| b. | Return on initial investment, common: | ||||||||||||||||
Related questions
| 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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