LO 2, 3, 4, 6 10.48B. (Learning Objectives 2, 3, 4, 6: Infer transactions from a company's comparative stockholders' equity) Optical Products Company reported the following stockholders equity on its balance sheet: AI December 31, 2019 2018 $ 155 30 Stockholders' Equity 1 (Dollars and shares in millions except for par value) 2 Convertible preferred stock-$2.50 par value; authorized 50 shares issued and outstanding: 2019 and 2018-6 and 12 shares, respectively 5 Common stock-$3.00 per share par value; authorized 6 1,300 shares; issued: 2019 and 2018-300 7 and 200 shares, respectively 8 Additional paid-in capital 9 Retained earnings 10 Treasury stock, common-at cost 11 2019-26 shares, 2018-6 shares 12 Total stockholders' equity 13 Total liabilities and stockholders' equity 14 900 1,500 6,200 600 855 5,066 (546) 8,069 $ 48,594 (102) 6,449 $ 43,449 Requirements 1. What caused Optical's preferred stock to decrease during 2019? Cite all possible causes. 2. What caused the company's common stock to increase during 2019? Identify all possible causes. 3. How many shares of Optical's common stock were outstanding at December 31, 2019? 4. Optical's net income during 2019 was $1,470 million. How much were the company's divi- dends during the year? 5. During 2019. Optical sold no treasury stock. What average price per share did the company pay for the treasury stock that it purchased during the year