dec. 31 of each year: 2005,? Bridger Bike Corp. declared following annual dividends over six-year period ending dec. 31 of each year: 2005, $5,000; 2006, $18,000; 2007, $45,000; 2008, $45,000; 2009, $60,000; and 2010, $67,000. During entire period entire outstanding stock of company was composed of 10,000 shares of 2% cumulative preferred stock, $100 par, and 25,000 shares of common stock, $1 par.
Instructions:
1) determine total dividends and per-share dividends declared on each class of stock for each of the six years. There were no dividends in arrears on Jan 1, 2005. Summarize data in tabular form.
2) determine average annual dividend per share for each class of stock for the six year period.
3) assuming a market price of $125 for preferred stock and $8 for common, calculate average annual percentage return on initial shareholders' investment, based on annual average dividend per share a) for preferred stock and b) for common
Preferred Dividends Common Dividends
YearsTotal dividends Total Per Share Total Per Share
2005$5,000$5,000.00 $0.50 $0.00 $0.00
200618,000$18,000.00 $1.80 $18,000.00 $0.00
200745,000
200845,000
200960,000
201067,000
In year 2007 don’t forget to add the dividends in arrears in your calculation which is $10,000
Instructions:
1) determine total dividends and per-share dividends declared on each class of stock for each of the six years. There were no dividends in arrears on Jan 1, 2005. Summarize data in tabular form.
2) determine average annual dividend per share for each class of stock for the six year period.
3) assuming a market price of $125 for preferred stock and $8 for common, calculate average annual percentage return on initial shareholders' investment, based on annual average dividend per share a) for preferred stock and b) for common
Preferred Dividends Common Dividends
YearsTotal dividends Total Per Share Total Per Share
2005$5,000$5,000.00 $0.50 $0.00 $0.00
200618,000$18,000.00 $1.80 $18,000.00 $0.00
200745,000
200845,000
200960,000
201067,000
In year 2007 don’t forget to add the dividends in arrears in your calculation which is $10,000