QUESTION 5 (20 POINTS) The year-end balance sheet of Knights, Inc., includes the following stockholders' equity section (with certain details omitted). Stockholders' equity: 10% cumulative preferred stock, $100 par value, authorized 100,000 shares Common stock, $2 par value, authorized 2,000,000 shares $4,400,000 3,400,000 6,800,000 Additional paid-in capital: common stock Donated capital Retained earnings 400,000 3,160,000 Total stockholders' equity $18,160,000 Instructions From this information, compute answers to the following questions. a. How many shares of preferred stock have been issued? b. What is the total amount of the annual dividends paid to preferred stockholders? c. How many shares of common stock are outstanding? d. What was the average issuance price per share of common stock? e. What is the book value per share of common stock? (There are no dividends in arrears.) f. Assume that retained earnings at the beginning of the year amounted to $1,200,000 and the net income for the year was $4,800,000. What was the dividend declared during the year on each share of common stock? (Hint: Net income increases retained earnings, whereas dividends decrease retained earnings.)