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yosemite bike corp. manufactures mountain bikes and distributes them through retail outlets in california, oregon, and washington. yosemite bike has declared the following annual dividends over a six-year period ended december 31 of each year: 20y1, $24,000; 20y2, $10,000; 20y3, $121,000; 20y4, $95,000; 20y5, $120,000; and 20y6, $140,000. during the entire period, the outstanding stock of the company was composed of 25,000 shares of cumulative preferred 2% stock, $90 par, and 100,000 shares of common stock, $4 par.

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anshumanaryan799

Average annual equity dividend/share is  $0.40 per share.

Annual dividend that should be paid to preferred equity holders = 25,000*2%*90 = 45,000. As total dividend is less than this figure in 2009 and 2010, all of the dividend gets paid to preferred equity holders so that there is zero dividend for common equity holders.

By 2011, there is arrear of (45,000*2-24,000-10,000) = 56,000 towards the preferred holders. Along with the 45,000 for 2011, there is a total payment of 56,000+45,000 = 101,000 towards preferred equity holders. The remaining dividend of 126,000-101,000 = 25,000 is paid towards common holders.

In 2012 to 2014, the preferred holders get the standard 45,000 while the remaining dividends get paid to common equity holders.

The per share dividend is calculated by dividing the dividend paid by the number of outstanding shares - this is 25,000 for preferred shares and 100,000 for common shares.

2. Total preferred dividend paid = 270,000

So average annual preferred dividend/share = 270,000/6/25,000 = $1.80 per share.

Learn more about equity holders here: https://brainly.com/question/17191274

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