In Year 2, if Blue Hamster has 5,000 shares of preferred stock issued and outstanding, then each preferred share should expect to receive $40.00 in annual dividends. If Blue Hamster has 400,000 shares of common stock issued and outstanding, then the firm's earnings per share (EPS) is expected to change from $15.69 In Year 1 to $29.81 in Year 2. Blue Hamster's earnings before Interest, taxes, depreciation and amortization (EBITDA) value changed from In Year 1 to in Year 2 It is to say that Blue Hamster's net inflows and outflows of cash at the end of Years 1 and 2 are equal to the company's annual contribution to retained earnings, $4,194,250 and $5,121,531, respectively. This is because of the items reported in the income statement involve payments and receipts of cash. The right side of the balance sheet shows the firm's liabilities and stockholders' equity. Which of the following best describes shareholders' equity? Equity is the initial claim on value of the assets before the firm pays off its liabilities. Equity is the difference between the company's assets and liabilities