Rainer Bike Corp. manufactures mountain bikes and distributes them through retail outlets in Oregon and Washington. Rainer Bike Corp. has declared the following annual dividends over a six-year period: 2003, $60,000; 2004, $8,000; 2005, $30,000; 2006, $40,000; 2007, $80,000; and 2008, $115,000. During the entire period, the outstanding stock of the company was composed of 40,000 shares of 2% preferred stock, $25 par, and 50,000 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:

2. Determine the average annual dividend per share for each class of stock for the six-year period.
3. Assuming that the preferred stock was sold at par and common stock was sold at $18.75 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 commonstock.

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Preferred Dividends Common Dividends Total Dividends Year 2003 2004 2005 2006 2007 2008 Total Per Share Total Per Share 60,000 8,000 30,000 40,000 80,000 115,000