On December $31,2023,$ Dow Steel Corporation had $760,000$ shares of common stock and $316,000$ shares of $8\%,$ noncumulative, nonconvertible preferred stock issued and outstanding.

Dow issued a $4\%$ common stock dividend on May $15$ and paid cash dividends of $$560,000$ and $$85,000$ to common and preferred shareholders, respectively, on December $15,2024.$

On February $28,2024,$ Dow sold $63,000$ common shares.

In keeping with its long$-$term share repurchase plan, $4,000$ shares were retired on July $1.$

Dow's net income for the year ended December $31,2024,$ was $$2,900,000.$

The income tax rate is $25\%.$

Also, as a part of a $2023$ agreement for the acquisition of Merrill Cable Company, another $31,000$ shares $($already adjusted for the stock dividend$)$ are to be issued to former Merrill shareholders on December $31,2025,$ if Merrill's $2025$ net income is at least $$660,000.$

In $2024,$ Merrill's net income was $$790,000.$

As part of an incentive compensation plan, Dow granted incentive stock options to division managers on December $31$ of the current and each of the previous two years.

Each option permits its holder to buy one share of common stock at an exercise price equal to market value at the date of grant and can be exercised one year from that date.

Information concerning the number of options granted and common share prices follows:

$\backslash$table$[[\backslash$table$[[$Options Granted$],[$Datjusted for the$]]],[$Dranted$,\backslash$table$[[$stock dividend$)]],$Share Price$],[$December$.31,2022,23,000,$$$38$