Yukon Bike Corp. manufactures mountain bikes and distributesthem through retail outlets in Canada, Montana, Idaho, Oregon, andWashington. Yukon Bike Corp. declared the following annualdividends over a six-year period ending December 31 of each year:Year 1, $36,000; Year 2, $45,000; Year 3, $72,000; Year 4,$207,000; Year 5, $252,000; and Year 6, $324,000. During the entireperiod, the outstanding stock of the company was composed of 30,000shares of 3% preferred stock, $100 par, and 100,000 shares ofcommon stock, $20 par.
Instructions:
1. Determine the total dividends and theper-share dividends declared on each class of stock for each of thesix years. If required, round your answers to the nearest cent. Ifthe amount is zero, please enter "0".
| | | | | Preferred Dividends | Common Dividends |
| Year | Total Dividends | | | Total | | | | | | Per Share | | | Total | | | | | | Per Share |
| Year 1 | | $ 36,000 | | $ | $ | $ | $ |
| Year 2 | | 45,000 | | | | | |
| Year 3 | | 72,000 | | | | | |
| Year 4 | | 207,000 | | | | | |
| Year 5 | | 252,000 | | | | | |
| Year 6 | | 324,000 | | | | | |
| | | | $ | | $ |
2. Calculate the average annual dividend pershare for each class of stock for the six-year period. If required,round your answers to the nearest cent.
| Average annual dividend for preferred: | $ per share |
| Average annual dividend for common: | $ per share |
3. Assuming a market price per share of $210for the preferred stock and $25 for the common stock, calculate theaverage annual percentage return on initial shareholders'investment, based on the average annual dividend per share forpreferred stock and for common stock.
Round your answers to two decimal places.
| Preferred stock: | % |
| Common stock: | % |
