Bridger Bike Corp. manufactures mountain bikes and distributes them through reta

Question

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 2% cumulative preferred stock, $100 par, and 25,000 shares of common stock, $1 par.

Explanation / Answer

let me see. 10,000 shares of cumlative perferd shares 100 par at 2% That would be $2.00 per share. or 20,000 But lets say these are total dividends, both common and prefered. first year 5000 5000 0 (15,000) .50 0 second year 18,000 18,000 0 (17,000) 1.80 0 third year 45,000 37,000 8,000 (0) 3.70 [8.25] forth year 45,000 20,000 25,000 (0) 2.00 1.00 fith year 60,000 20,000 40,000 (0) 2.00 [40/25] sixth year 67,000 20,000 47,000 (0) 2.00 [47/25]

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