Bridger Bike Corp. manufactures mountain bikes and distributes them through retail outlets in Montanan, Oregon, Washington. Bridger Bike Corp. has declared the following annual dividends over a 6 year period ending December 31 of each year: 2005, $5000; 2006, $18000; 2007, $45000; 2008, $45000; 2009, $60000; and 2010, $67000. During the entire period , the outstanding stock of the company was composed of 10000 shares of 2% cumulative preferred stock, $100 par,and 25000 shares of common stock, $1 par.

1. 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, 2005. 2005, $5000; 2006, $18000; 2007, $45000; 2008, $45000; 2009, $60000; 2010, $67000

2. Determine the average annual dividend per share for each class of stock for the six year period.

3. Assuming a market price of $125 for the preferred stock and $8 for the common stock, calculate the average annual percentage return on initial shareholders' investment, based on thev average annual dividend per share (a) for preferred stock and (b) for common stock.