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; Year 1, $28,000; Year 2, $44,000; Year 3, $48,000; Year 4, $60,000, Year 5, $76,000; and Year 6, $140,000. During the entire period, the outstanding stock of the company was composed of 40,000 shares opf 2% preferred stock, $65 par, and $50,000 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. Summarize ther data in tabular form, using the following column headings.

Year Total Preferred Dividends Common Dividends

Dividends Total Per Share Total Per Share

year 1 $28,000

Year 2 $44,000

year 3 $48,000

year 4 $60,000

year 5 $76,000

year 6 $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 dividen per share (a) for preferred stock and (b) for common stock.