Nicole has been financing Nicole's Getaway Spa (NGS) using equity financing. Currently NGS has authorized 100,000 no- par preferred shares and 200,000 $2 par common shares. Outstanding shares include 42,000 preferred shares and 32,000 common shares. Recently the following transactions have taken place. a. NGS issues 600 preferred shares for $12 a share. b. NGS repurchases 600 common shares for $11 a share. c. On November 12, the board of directors declares a $0.40 cash dividend on each outstanding preferred share. d. The dividend is paid December 20. CC11-1 Part 1 Required: 1. Prepare the journal entries needed for each of the transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) 2. If you were a common shareholder concerned about your voting rights, would you prefer Nicole to issue additional common shares or additional preferred shares? O Additional Preferred Shares O Additional Common Shares 3. Show the overall effect of each transaction on the assets, liabilities, and shareholders' equity of the company. (Use + for increase, - for decrease, and NE for no effect.) Balance Sheet Transaction Assets Liabilities Stockholders' Equity 4. How would each transaction affect the ROE ratio? (Use + for increase, for decrease, and NE for no effect.) Transaction ROE O o oo