Help please and thank you in advance Organization, Stock Transactions, and Divid
ID: 2463453 • Letter: H
Question
Help please and thank you in advanceOrganization, Stock Transactions, and Dividends Problems SeriesB PR 13-1B Dividends on preferred and common stock Yosemite Bike Corp. manufact outlets in California, Oregon, and Washington. Yosemite following annual dividends over a six-year period en OBJ. 3 ures mountain bikes and distributes them through reta asiyear period ended December 31 of each yea 1. Common dividends in 2011 $25,000 ngton. Yosemite Bike Corp has declared the 0, and 2014 , and Washington. Yosemite Bike Corp. has 2009, $24,000, 2010, $10,000, 2011, $126,000: 2012, $100,000; 2013, $125.00 $125.000. During the entire period, the outstanding stock of the ares of com- of 25,000 shares of cumulative preferred 2% stock, $90 par, and 100,000 sha mon stock, $4 par ock, cumulat ed, thended Bike Corp has hrough retail Instructions 1. Determine the total dividends and the per-share dividends declared on each class of 1, 2009. stock for each of the six years. There were no dividends in arrears on January Summarize the data in tabular form, using the following column headings Total Common Dividends Dividtends Prefered Dividends Year 2009 2010 2011 2012 2013 2014 Total Per Share Total Per Share 24,000 10,000 26,000 100,000 125,000 125,000 2. Determine the average annual dividend per share for each class of stock for the six- year period 3. Assuming a market price of $100 for the preferred stock and $5 for the common stock. calculate the average annual percentage return on initial shareholders' investment, based on the average annual dividend per share (a) for preferred stock and (b) for common stock.
Explanation / Answer
Preference stock Common stock No of shares 25000 100000 Par value 90$ 4$ Dividend 2 % i.e $90*.02= $1.8 Total Dividend 45000 Preference Dividend Common Dividend Year Total Dividend Dividend for year Total per share (total/25000 stock) Total (Total div-pref. Div) per share 2009 24000 2009 24000 0.96 0 0 2010 10000 2009 10000 0.4 0 0 2011 126000 2009 =11000 (45000-24000-10000) 0.44 25000 0.25 2010 45000 1.8 2011 45000 1.8 2012 100000 2012 45000 1.8 55000 0.55 2013 125000 2013 45000 1.8 80000 0.8 2014 125000 2014 45000 1.8 80000 0.8 Average Annual Dividend (Total/6yr) 45000 1.8 40000 0.4
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