SECTION TWO: EQUITY SECTION & RETAINED EARNINGS (20 possible marks) 6. Shaima Company is authorized to issue a. 500,000 shares of AED 10, preferred stock, par value AED 100 b. 400,000 shares of common stock of par value AED 10 c. On Jan 1 2018: Company issued 20% shares of preferred stock at par value. d. The company also issued 50.000 shares of common stock at AED 12 each. e. During the year the company carned a net income of AED 850,000 and decided to distribute AED 1.5 per share dividend to common stockholders. The retained earnings from previous year is AED 310,000 Required: 1. Changes in the retained earnings 2. Changes in the shareholder's equity section Statement of Retained Earnings: Bepinning Retained Faming Net income Issued Preferred stock dividend 100.000 10 Retained coming Equity section Preferred stock par Value 100.000100 Capital change Capital change 50,000 Capital contribution retained caring Total Shareholders' Equity SECTION THREE: BOND CALCULATIONS (10 possible marks) 7. Sara bought 4 bonds of the pharmaceutical company with the coupon rate of 6% per annum for each bond. The par value of the bond is AED 1,000. The bond was issued for AED 1,150. The maturity of the bond is 10 years. Required: a. Calculate total annual coupon payment for Sara. b. Calculate current yield c. Will Yield to maturity be more than 6%? Justify your d. Identify the type of bond price in this case. (Discounted Premium), Justify your answer. Issued common stock dividend 50.00015 Commen stock per value 50,000"10