Question 1 (4 points, 10 minutes) TriStar Corporation started operating in January 2001 and issued 55,000 ordinary shares with $100 stated value. In 2002, the company issued 10,000 10% preferred shares with $10 par value. The earnings of the company for year 2002 and 2003 are $90,000 and $150,000 respectively. In 2002, a $0.5 per share and in year 2003 a $1 per share cash dividend is paid to common stockholders. Required a. Determine the year 2001, 2002, 2003 dividend paid to preferred shareholder b. Determine the retained earnings of the company at 2003 year end Solution: a) 2001 2002 2003 Preferred shareholder b) Retained earnings at 2003 year-end