Yosemite Bike Corp manufactures mountain bikes and

distributes them through

Yosemite Bike Corp. manufactures mountain bikes and distributes them through retail outlets in
California, Oregon, and Washington. Yosemite Bike Corp. has declared the following annual
dividends over 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, the outstanding stock of the company was composed of 25,000 shares of
cumulative preferred 2% stock, $90 par, and 100,000 shares of common stock, $4
par.Instructions1. 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 on January 1,
2009.Summarize the data in tabular form, using the following column headings: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 (b) For commonstock.
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Yosemite Bike Corp manufactures mountain bikes and distributes them through
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