NuCorp presented the following data.

Net income Bonds: 10%, $750,000 par value Preferred stock: 100,000 shares outstanding, $100 par, 8% cumulative, not convertible Common stock: Shares outstanding 1/ 1 Issued for cash, 4X 1 Issued 40% stock dividend, 10/1 53 5,800,000 738,500 10,000,000 500,000 800,000