Bobs Bike Corp manufactures mountain bikes and distributes them through retail outlets in Ohio, Michigan, Texas and New York. Bobs Bike Corp has declared the following annual dividends over a six-year period ending Dec 31 of each year:

Year 1 $ 28,000

Year 2 $ 44,000

Year 3 $ 48,000

Year 4 $ 60,000

Year 5 $ 76,000

Year 6 $ 140,000.

During the entire period, the outstanding stock of the company was composed of 40,000 share of 2% preferred stock, $ 65 par and 50,000 shares of common stock, $ 1 par.

Determine the total dividends and the per-share dividends declared on each class of stock for each of the six years. Use the table below:

Year	Total		Preferred Dividends			Common Dividends
	Dividends		Total	Per Share		Total	Per Share
1	$28,000.00
2	$44,000.00
3	$48,000.00
4	$60,000.00
5	$76,000.00
6	$140,000.00

Calculate the average annual dividend per share for each class of stock for the six year period. Round to the nearest cent.

Assuming that the preferred stock was sold at $ 57.50 and common stock was sold at $5.00 at the beginning of the six-year period, calculate the average annual percentage return on initial shareholders' investment based on the average annual dividend per share (a) preferred stock and (b) common stock.