[abarron]

Outlets in Montana, Idaho, Oregon, and Washington. Bridger Bike Corp. has declared
The following annual dividends over a six-year period ending December 31 of each
Year: 2005, $5,000; 2006, $18,000; 2007, $45,000; 2008, $45,000; 2009, $60,000; and 2010,
$67,000. During the entire period, the outstanding stock of the company was composed
Of 10,000 shares of 2% cumulative preferred stock, $100 par, and 25,000 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. There were no dividends in arrears on January 1,
2005. Summarize the data in tabular form, using the following column headings:
Total __P_r_e_fe_r_r_e_d_ _D_i_v_i_d_e_n_d_s__ __C_o_m__m__o_n_ _D_i_v_i_d_e_n_d_s__
Year Dividends Total Per Share Total Per Share
2005 $ 5,000
2006 18,000
2007 45,000
2008 45,000
2009 60,000
2010 67,000
2. Determine the average annual dividend per share for each class of stock for the sixyear
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 the average annual dividend per share (a) for preferred stock
And (b) for common stock.
PR 13-1A
Dividends on
Preferred and
Common stock
Obj. 3
✔ 1. Common
Dividends in 2007:
$8,000
Sheldon Optics produces medical lasers for use in hospitals. The accounts and their