On April 1, the company issued 15,000 8% noncumulative, retractable preferred shares for $100 per share. The shares are retractable by the holder on or after September 1 of the current year, and redeemable at the option of the company on or after September 2 of the current year. Commencing on September 2 the company is required to purchase 10% annually of the total outstanding preferred shares at $105 per share. prepare a report to the board of directors and does it present favorable debt to equity ratio