problem 1

Yukon Bike Corp. manufactures mountain bikes and distributes them through retail

outlets in Canada, Montana, Idaho, Oregon, and Washington. Yukon Bike Corp. has

declared the following annual dividends over a six-year period ending December 31 of each year: 2008, $28,000; 2009, $44,000; 2010, $48,000; 2011, $60,000; 2012, $76,000;

and 2013, $140,000. During the entire period, the outstanding stock of the company

was composed of 40,000 shares of 2% preferred stock, $65 par, and 50,000 shares of common stock, $1 par.

Instructions

1. Determine the total dividends and the per-share dividends declared on each

class of stock for each of the six years. Summarize the data in tabular form,

using the following column headings:

year

Total

Dividends

Preferred Dividends Common Dividends

Total Per share Total Per share

2008 $ 28,000

2009 44,000

2010 48,000

2011 60,000

2012 76,000

2013 140,000

2. Calculate the average annual dividend per share for each class of stock for

the six-year period.

3. 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) for preferred stock and (b) for common stock.

I do not know how to find the Per Share amount. I found the totals but not sure how to find their corresponding per share.

The Preferred Dividends total is: The Common DIvidends total is:

28000 0

44000 0

48000 0

52000 8000

52000 24000

52000 88000

How do you find the per share amount?