On December 31, 2020, Dow Steel Corporation had 800,000 shares of common stock and 320,000 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 $600,000 and $89,000 to common and preferred shareholders, respectively, on December 15, 2021. On February 28, 2021, Dow sold 75,000 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 $3,100,000. The income tax rate is 25%. Also, as a part of a 2020 agreement for the acquisition of Merrill Cable Company, another 20,000 shares (already adjusted for the stock dividend) are to be issued to former Merrill shareholders on December 31, 2022, if Merrill's 2022 net income is at least $700,000. In 2021, Merril's net income was $830,000. 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 granted and common share prices follows: Date Granted December 31, 2019 December 31, 2020 Options Granted (adjusted for the stock dividend) December 31, 2021 27,000 22,000 25,500 The stock options issued in 2019 were not exercised in 2020 or 2021. Share Price $ 46 $ 55 $ 54