3. Assuming a market price per share of $180 for the preferredstock and $9 for the common stock, calculate the averageannual percentage return on initial shareholders' investment,based on the average annual dividend per share for preferredstock and for common stock.Round your answers to two decimal places.Preferred stock:Common stock:Check My Work 7 more Check My Work uses remaining.Previous 10:21 A : *4GEv2.cengagenow.com/ilrr10Chapter 8Yukon Bike Corp. manufactures mountain bikes and distributesthem through retail outlets in Canada, Montana, ldaho, Oregon,and Washington. Yukon Bike Corp. declared the followingannual dividends over a six-year period ending December 31 ofeach year: Year 1, $40,000; Year 2, $50,000; Year 3, $80,000;Year 4, $230,000; Year 5, $280,000; and Year 6, $360,000.During the entire period, the outstanding stock of the companywas composed of 25,000 shares of 4% preferred stock, $100par, and 100,000 shares of common stock, $5 par.Instructions:1. Determine the total dividends and the per-share dividendsdeclared on each class of stock for each of the six years.Assume that preferred dividends are paid before any commondividends. If required, round your answers to the nearest cent.If the amount is zero, please enter "0".Preferred DividendsCommon DividendsYearTotal DividendsTotalPer ShareTotalPer ShareYear 1$ 40,00040,000$1.60Year 250,00050,0002.00Year 380,00080,0003.20Year 4230,000100,0004.00Year 5280.000100,0004.00Year 6360,000100,0004.0018.802. Calculate the average annual dividend per share for eachclass of stock for the six-year period. If required, round youranswers to the nearest cent.Average annual dividend for preferred:per shareAverage annual dividend for common:per share3. Assuming a market price per share of $180 for the preferredstock and $9 for the common stock, calculate the averageannual percentage return on initial shareholders' investment,based on the average annual dividend per share for preferredstock and for common stock.Round your answers to two decimal places.Preferred stock:Common etockCheck My Work 7 more Check My Work uses remaining.( Previous

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Description: 3. Assuming a market price per share of $180 for the preferredstock and $9 for the common stock, calculate the averageannual percentage return on initial shareholders' investment,based on the average annual dividend per share for preferredstock and

The question is based on the concept of Accounting for Shares and Debentures.

Business

Accounting

Assuming a market price per share of $180 for the preferre ock and $9 for the common stock, calculate the average nnual percentage return on initial shareholders' investment, ased on the average annual dividend per share for preferred ock and for common stock. bund your answers to two decimal places.

Assuming a market price per share of $180 for the preferre ock and $9 for the common stock, calculate the average nnual percentage return on initial shareholders' investment, ased on the average annual dividend per share for preferred ock and for common stock. bund your answers to two decimal places.

Corporate Financial Accounting

15th Edition

ISBN:9781337398169

Author:Carl Warren, Jeff Jones

Publisher:Carl Warren, Jeff Jones

Chapter4: The Accounting Cycle

Section: Chapter Questions

Problem 4.5MAD

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