[dott1]

Bridger bike corp. manufactures mountain bikes and distributs them through retail outlets in Montana, Idaho Oregon and Washington. Bridger bike corp. has declared the following annual dividends over a six year period ending dec 31 of each year 2005, $5000; 2006, $18000; 2007, $45000; 2008, $45000; 2009, $60000; 2010, $67000. During the entire period, the outstanding stock of the company was composed of 10000 shares of 2% cumalative preferred stock, $100par, and 25,000shares of common stock, $1par. Determin 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 in january1, 2005?

[pready]

First you need to calculate the dividends for your Preferred stock, which is the number of Preferred shares outstanding * the percanetage rate * the par value of the Preferred stock. So your formula will be: 10,000 shares outstanding Preferred stock * 2% * $100 par value = dividends to Preferred Stockholders

For the common stockholders simply take your total dividends and subtract the dividends to Preferred Stockholders calculated above. This is the dividends available to common stockholders.

For your individual per share dividends of Preferred stock you simply take the par value of the Preferred stock * your 2%.

For your individual pershare dividends of Common stock you simply take the dividends available to common stockholds and divide it by the number of Common shares outstanding.

Note you will need to follow my steps for each year of dividends with the number of shares outstanding of stock in each individual year.