The following information was obtained from the records of Shae, Inc.

Merchandise inventory	$	148,500
Notes payable (long-term)		165,000
Sales		495,000
Buildings and equipment		297,000
Selling, general, and administrative expenses		49,500
Accounts receivable		74,250
Common stock (20,000 shares)		240,000
Income tax expense		31,200
Cash		279,772
Retained earnings, 1/1/13		147,600
Accrued liabilities		9,900
Cost of goods sold		297,000
Accumulated depreciation		133,650
Interest expense		44,500
Accounts payable		49,500
Dividends declared and paid during 2013		18,928

Except as otherwise indicated, assume that all balance sheet items reflect account balances at December 31, 2013, and that all income statement items reflect activities that occurred during the year ended December 31, 2013. There were no changes in paid-in capital during the year.

a.

Prepare an income statement and statement of changes in stockholders equity for the year ended December 31, 2013, and a balance sheet at December 31, 2013, for Shae, Inc. Based on the financial statements that you have prepared for part a, answer the questions in parts be. b. What is the companys average income tax rate? c. What interest rate is charged on long-term debt? d. What is the par value per share of common stock? e. What is the companys dividend policy (i.e., what proportion of the companys earnings is used for dividends)?