On December 31, 2020, Dow Steel Corporation had 710,000 shares of common stock and 311,000 shares of 7%, noncumulative, nonconvertible preferred stock issued and outstanding, Dow issued a 4% common stock dividend on May 15 and paid cash dividend of $510,000 and $80,000 to common and preferred shareholders, respectively, on December 15, 2021. On February 28, 2021. 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, 2021, was $2,650,000. The income tax rate is 25%. Also, as a pa of a 2020 agreement for the acquisition of Merrill Cable Company, another 35,000 shares (already adjusted for the stock dividend) a to be issued to former Merrill shareholders on December 31, 2022, if Merrill's 2022 net income is at least 5610,000. In 2021, Merrill's net income was $740,000, As part of an incentive compensation plan Dow granted incentive stock options to division managers at 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 grante and common share prices follows: Options Granted Date Granted (adjusted for the stock dividend) Share Price December 31, 2019 December 31, 2020 18,000 13,000 16,500 $ 28 $ 37 S 36 December 31, 2021