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# Bridger Bike Corp. manufactures mountain bikes and distributes them through retail outlets in Montana, Idaho, Oregon, and Washington. Bridger Bike...

8-5. Please see the attached Word Doc. I will also be submitting an Excel Doc that the information needs to be put into. THANKS!!

Bridger Bike Corp. manufactures mountain bikes and distributes 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 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 4% preferred stock, \$50 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. Summarize the data in tabular form, using the following column headings: Preferred Dividends Common Dividends Year Total 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. Calculate the average annual dividend per share for each class of stock for the six-year period. Round to the nearest cent. 3. Assuming that the preferred stock was sold at \$86 and common stock was sold at \$22.75 at the beginning of the six-year period, 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.

Problem 8-5
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