2.Tammy's Tool Company is a retail store that sells tools to farmers across the country. Tammy reported net income of $100,000 and issued preferred dividends of $10,000 during the year. Tammy also had 10,000 outstanding shares with the value of $5 per common shares, during the year. Use the above information to answer a - e. 1. What does preferred dividends mean? b. In this example the actual net income=? c. How much common equity Tammy had? d. Calculate Tammy's return on common equity. (Express your answer in percent) e. What does return on common equity indicate? Does Tommy's company a down swing or Upswing Company? Justify your