Chapter 11 – Stockholders’ Equity Analysis Rey Inc. is planning to report the following information in the equity section of their balance sheet as of 12/31/2020. All common and preferred stock shares were sold when the company was established on 1/1/2018. Rey paid dividends for the first time in 2020 in the amount of $50,000. Balance Sheet Information Common Stock, par $0.50 Additional Paid-in Capital – Common stock Preferred Stock, par $10, 5% dividend rate Additional Paid-in Capital – Preferred stock Retained Earnings Treasury Stock – 5,000 shares of common stock repurchased in 2019 Total Stockholder’s Equity $ 200,000 4,800,000 100,000 50,000 150,000 (40,000) $5,260,000 1. How many common stock shares were issued as of 12/31/2020? How many were outstanding? 2. What was the market price per share of the common stock shares when Rey sold them on 1/1/2018? 3. What price did Rey pay to repurchase their common stock in 2019? 4. If the retained earnings balance was $100,000 as of 1/1/2020, what was Rey’s net income in 2020? 5. How much of the dividends paid in 2020 went to preferred stockholders (assuming preferred dividends are current, but not cumulative)? How much went to common stockholders? 6. What was Rey’s earnings per share in 2020 if preferred dividends were non-cumulative?