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Select a Fortune 500 company whose name starts with the first letter in your last name and obtain the companys most recent 10-K report. (You may use the same company that you used previously.) Be sure that the company has a complex capital structure. Attach the equity section of the balance sheet and the notes relevant to answering the following questions:

(a) Does the company have preferred stock and common stock (or different classes of common stock)? Do its stocks have a par or stated value; if so, what are they? How many of each type of stock are authorized and have been issued? What is the average issue price?

(b) Were any shares issued in any of the years reported in the financial statements? At what price?

(c) What dividends were paid in each of the years reported in the financial statements? What is the payout ratio?

(d) Does the company have a stock-based compensation plan? How many options are outstanding? When do they expire? Were any options exercised during any of the years reported in the financial statements? At what exercise price?

(e) What number of shares was used to compute the diluted earnings per share in each of the years reported? What elements caused the dilution? Were there any convertible securities or other potentially dilutive items that were not included in the computation of diluted earnings per share? If so, explain why they were excluded. Does the company follow the required GAAP disclosure for earnings per share?

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