Interpret the Shareholders' Equity Section}

Medici Inc. has the following shareholders" equity section of the statement of financial position:

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1. How many preferred shares are authorized?
2. How many common shares are outstanding?
3. What was the arerage selling price for the common shares when issued?
4. If the annual dividends on the preferred shares are \(\$ 0.80\) per share, what is the dividend rate on the preferred shares?
OBJECTIVE 3 Exercise

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Medici Inc. Statement of Financial Position (Partial) Shareholders' equity: Preferred shares, unlimited authorized: 30.000 issued and outstanding Common shares, unlimited shares authorized: 550.000 issued and outstanding Contributed surplus: $ 300.000 5,200,000 Preferred shares 90.000 Total share capital 5.590.000 Retained earnings 450.000 Accumulated other comprehensive income 22.000 Total shareholders' equity $6.062,000