1. Equity Question: Metzger Steel Corporation (MSC) is a small specialty steel manufacturer in northern Alabama that the Metzger family has owned for several generations. Arnold Metzger III is a major shareholder in MSC by virtue of having inherited 200,000 shares of common stock in the company. PrPreviouslyArnold has not shown much interest in the business because of his enthusiasm for archaeology, which takes him to distant parts of the world. However, when he received minutes of the last board of directors meeting, he questioned several transactions involving the stockholders' equity of MSC. As a person with accounting knowledge and a prospective Stern grad, he asks you to help him interpret these transactions' effect on his interest in MSC. First, you note that at the beginning of 2008 the stockholders' equity of MSC appeared as follows: Then you read the minutes of the December 15,2008 , meeting of the board of directors of MSC: Item A: The president reported the following transactions involving the company's stock during the last quarter: i. October 15. Sold 500,000 shares of authorized common stock through the investment banking firm of B. Abbott at a net price of $50 per share. ii. November 1. Purchased 100,000 treasury shares from Sharon Metzger for $55 per share. Item B: November 15-16: On November 15, the board declared a 2-for-1 stock split (accomplished by halving the par Value, doubling each stockholder's shares, and increasing authorized shares to 10,000,000). This was followed by a 10 percent stock dividend. The market value of Metzger stock on the board meeting date after the stock split was estimated to be $30. On November 16 , the board declared and paid a cash dividend of $2.00 per share. Item C: The chief financial officer stated that the company reported a net income of $4,000,000 for the year ended December 31,2008 . Required: (i) For each of these transactions, indicate the effect on Capital Stock at Par, Paid in Excess of Par, Retained Earnings, Treasury Stock, Total Stockholders' Equity, Shares Issued and Shares Outstanding. Use the following Table. Don't leave any blank spaces and indicate "+" or "-" to indicate increases and decreases and None if there is no effect. (ii) Did the above events change Arnold Metzger III percentage of ownership of the company during the year and by how much? Solution Template for Part II. Qn.1 i. Did the above events change Arnold Metzger III percentage of ownership of the company during the year and by how much? ii. Did the above events change Arnold Metzger III percentage of ownership of the company during the year and by how much