The outstanding capital stock of Robbins Corporation consisted of 3,000 shares of 10% preferred stock, $250 par value and 30,000 shares of no par common stock with a stated value of $250. The preferred was issued at $412, the common at $480 per share. On January 1,2007, the retained earnings of the company were $250,000. During the succeeding five years, net income was as follows: 2007 2008 2009 2010 2011 767 500 10 000 8000 6o 0co 662.500 No dividends were in arrears as of January 1,2007, and during the five years 2007-2011, the board of directors declared dividends in each year equal to net income of the year