How do I calculate this problem?
Bridger Bike Corp. manufactures mountain bikes and distributes themthrough retail
outlets in Montana, Idaho, Oregon, and Washington. Bridger BikeCorp. has declared
the following annual dividends over a six-year period endingDecember 31 of each
year: 2005, $5,000; 2006, $18,000; 2007, $45,000; 2008, $45,000;2009, $60,000; and 2010,
$67,000. During the entire period, the outstanding stock of thecompany was composed
of 10,000 shares of 2% cumulative preferred stock, $100 par, and25,000 shares of common
stock, $1 par.
Instructions
1. Determine the total dividends and the per-share dividendsdeclared on each class
of stock for each of the six years. There were no dividends inarrears on January 1,
2005. Summarize the data in tabular form, using the followingcolumn headings:
Total __P_r_e_fe_r_r_e_d_ _D_i_v_i_d_e_n_d_s__ __C_o_m__m__o_n__D_i_v_i_d_e_n_d_s__
Year Dividends Total Per Share Total Per Share
2005 $ 5,000
2006 18,000
2007 45,000
2008 45,000
2009 60,000
2010 67,000
2. Determine the average annual dividend per share for each classof stock for the sixyear
period.
3. Assuming a market price of $125 for the preferred stock and $8for the common
stock, calculate the average annual percentage return on initialshareholdersâ
investment, based on the average annual dividend per share (a) forpreferred stock
and (b) for common stock.
Bridger Bike Corp. manufactures mountain bikes and distributes themthrough retail
outlets in Montana, Idaho, Oregon, and Washington. Bridger BikeCorp. has declared
the following annual dividends over a six-year period endingDecember 31 of each
year: 2005, $5,000; 2006, $18,000; 2007, $45,000; 2008, $45,000;2009, $60,000; and 2010,
$67,000. During the entire period, the outstanding stock of thecompany was composed
of 10,000 shares of 2% cumulative preferred stock, $100 par, and25,000 shares of common
stock, $1 par.
Instructions
1. Determine the total dividends and the per-share dividendsdeclared on each class
of stock for each of the six years. There were no dividends inarrears on January 1,
2005. Summarize the data in tabular form, using the followingcolumn headings:
Total __P_r_e_fe_r_r_e_d_ _D_i_v_i_d_e_n_d_s__ __C_o_m__m__o_n__D_i_v_i_d_e_n_d_s__
Year Dividends Total Per Share Total Per Share
2005 $ 5,000
2006 18,000
2007 45,000
2008 45,000
2009 60,000
2010 67,000
2. Determine the average annual dividend per share for each classof stock for the sixyear
period.
3. Assuming a market price of $125 for the preferred stock and $8for the common
stock, calculate the average annual percentage return on initialshareholdersâ
investment, based on the average annual dividend per share (a) forpreferred stock
and (b) for common stock.
Related questions
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: | ||||||||||||||||
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 | % |
