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Yosemite Bike Corp. manufactures mountain bikes and distributes them through retail outlets in California, Oregon, and Washington Yosemite Bike has declared the following annual dividends over a six-year period ended December 31 of each year: 20Y1, $23,750; 20Y2, $11,000; 20Y3, $112,750; 20Y4, $97,500; 20Y5, $112,500; and 20Y6, $137,500. During the entire period, the outstanding stock of the company was composed of 25,000 shares of cumulative preferred 2% stock, $85 par, and 100,000 shares of common stock, $4 par. Required: 1. Determine the total dividends and the per-share dividends declared on each class of stock for each of the six years. There were no dividends in arrears at the beginning of 20Y1. Summarize the data in tabular form. If required, round your per share answers to two decimal places. If the amount is zero, please enter "0". Year 20Y1 20Y2 20Y3 20Y4 20Y5 20Y6 Total Dividends $23,750 11,000 112,750 97,500 112,500 137,500 Preferred Dividends Total $ Preferred stock Common stock Preferred Dividends Per Share 2. Determine the average annual dividend per share for each class of stock for the six-year period. Round your answers to two decimal places. % Common Dividends Total Average annual dividend for preferred stock Average annual dividend for common stock per share 3. Assuming a market price of $100 for the preferred stock and $5 for the common stock, determine the average annual percentage return on initial shareholders' investment, based on the average annual dividend per share (a) for preferred stock and (b) for common stock. Round your answers to two decimal places. % Common Dividends Per Share per share

Yosemite Bike Corp. manufactures mountain bikes and distributes them through retail outlets in California, Oregon, and Washington Yosemite Bike has declared the following annual dividends over a six-year period ended December 31 of each year: 20Y1, $23,750; 20Y2, $11,000; 20Y3, $112,750; 20Y4, $97,500; 20Y5, $112,500; and 20Y6, $137,500. During the entire period, the outstanding stock of the company was composed of 25,000 shares of cumulative preferred 2% stock, $85 par, and 100,000 shares of common stock, $4 par. Required: 1. Determine the total dividends and the per-share dividends declared on each class of stock for each of the six years. There were no dividends in arrears at the beginning of 20Y1. Summarize the data in tabular form. If required, round your per share answers to two decimal places. If the amount is zero, please enter "0". Year 20Y1 20Y2 20Y3 20Y4 20Y5 20Y6 Total Dividends $23,750 11,000 112,750 97,500 112,500 137,500 Preferred Dividends Total $ Preferred stock Common stock Preferred Dividends Per Share 2. Determine the average annual dividend per share for each class of stock for the six-year period. Round your answers to two decimal places. % Common Dividends Total Average annual dividend for preferred stock Average annual dividend for common stock per share 3. Assuming a market price of $100 for the preferred stock and $5 for the common stock, determine the average annual percentage return on initial shareholders' investment, based on the average annual dividend per share (a) for preferred stock and (b) for common stock. Round your answers to two decimal places. % Common Dividends Per Share per share

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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Yosemite Bike Corp. manufactures mountain bikes and distributes them through retail outlets in California, Oregon, and Washington. Yosemite Bike has declared the following annual dividends over a six-year period ended December 31 of each year: 20Y1, $23,750; 20Y2, $11,000; 20Y3, $112,750; 20Y4, $97,500; 20Y5, $112,500; and 20Y6, $137,500. During the entire period, the outstanding stock of the company was composed of 25,000 shares of cumulative preferred 2% stock, $85 par, and 100,000 shares of common stock, $4 par. Required: 1. Determine the total dividends and the per-share dividends declared on each class of stock for each of the six years. There were no dividends in arrears at the beginning of 20Y1. Summarize the data in tabular form. If required, round your per share answers to two decimal places. If the amount is zero, please enter "0". Year 20Y1 20Y2 20Y3 20Y4 20Y5 20Y6 Total Dividends $23,750 11,000 112,750 97,500 112,500 137,500 Preferred Dividends Total $ % Preferred Dividends Per Share % Common Dividends Total 2. Determine the average annual dividend per share for each class of stock for the six-year period. Round your answers to two decimal places. Average annual dividend for preferred stock Average annual dividend for common stock per share 3. Assuming a market price of $100 for the preferred stock and $5 for the common stock, determine the average annual percentage return on initial shareholders' investment, based on the average annual dividend per share (a) for preferred stock and (b) for common stock. Round your answers to two decimal places. Preferred stock Common stock $ $ Common Dividends Per Share per share
Transcribed Image Text:Yosemite Bike Corp. manufactures mountain bikes and distributes them through retail outlets in California, Oregon, and Washington. Yosemite Bike has declared the following annual dividends over a six-year period ended December 31 of each year: 20Y1, $23,750; 20Y2, $11,000; 20Y3, $112,750; 20Y4, $97,500; 20Y5, $112,500; and 20Y6, $137,500. During the entire period, the outstanding stock of the company was composed of 25,000 shares of cumulative preferred 2% stock, $85 par, and 100,000 shares of common stock, $4 par. Required: 1. Determine the total dividends and the per-share dividends declared on each class of stock for each of the six years. There were no dividends in arrears at the beginning of 20Y1. Summarize the data in tabular form. If required, round your per share answers to two decimal places. If the amount is zero, please enter "0". Year 20Y1 20Y2 20Y3 20Y4 20Y5 20Y6 Total Dividends $23,750 11,000 112,750 97,500 112,500 137,500 Preferred Dividends Total $ % Preferred Dividends Per Share % Common Dividends Total 2. Determine the average annual dividend per share for each class of stock for the six-year period. Round your answers to two decimal places. Average annual dividend for preferred stock Average annual dividend for common stock per share 3. Assuming a market price of $100 for the preferred stock and $5 for the common stock, determine the average annual percentage return on initial shareholders' investment, based on the average annual dividend per share (a) for preferred stock and (b) for common stock. Round your answers to two decimal places. Preferred stock Common stock $ $ Common Dividends Per Share per share
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