Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Yukon Bike Corp. manufactures mountain bikes and distributes them through retail outlets in Canada, Montana, Idaho, Oregon, and Washington. Yukon Bike Corp. declared the
Yukon Bike Corp. manufactures mountain bikes and distributes them through retail outlets in Canada, Montana, Idaho, Oregon, and Washington. Yukon Bike Corp. declared the following annual dividends over a six-year period ending December 31 of each year: Year 1, $24,000; Year 2, $30,000; Year 3, $48,000; Year 4, $138,000; Year 5, $174,000; and Year 6, $210,000. During the entire period, the outstanding stock of the company was composed of 100,000 shares of common stock, $5 par. Instructions: 1. Compute the average annual dividend per share for the six-year period. If required, round your answers to the nearest cent. Average annual dividend Average annual dividend per share per year per share 2. Assuming a market price per share of $9 for the common stock, calculate the average annual percentage return on initial shareholders' investment, based on the average annual dividend per share for common stock. Round your answer to two decimal places. Common stock %
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started