The Howe Company's stockholders' equity account is as follows Common stock (800,00 shares at $4 par) $3,200,000 Paid-in capital in excess of par $4,000,000 Retained earnings $2,200,000 Total...

The Howe Company's stockholders' equity account is as follows

Common stock (800,00 shares at $4 par)	$3,200,000
Paid-in capital in excess of par	$4,000,000
Retained earnings	$2,200,000
Total stockholders' equity	$9,400,000

The earnings available for common stockholders from this period's operations are $100,000, which have been included as part of the $2.2 million retained earnings.

a. What is the maximum dividend per share that the firm can pay? (Assume that legal capital includes all paid-in capital.)

b. If the firm has $170,000 in cash, what is the largest per-share dividend it can pay without borrowing?

Jun 07, 2022

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The Howe Company's stockholders' equity account is as follows Common stock (800,00 shares at $4 par) $3,200,000 Paid-in capital in excess of par $4,000,000 Retained earnings $2,200,000 Total...

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The Howe​ Company's stockholders' equity account is as​ follows Common stock (800,00 shares at $4 par) $3,200,000 Paid-in capital in excess of par $4,000,000 Retained earnings $2,200,000 Total...

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The Howe Company's stockholders' equity account is as follows Common stock (800,00 shares at $4 par) $3,200,000 Paid-in capital in excess of par $4,000,000 Retained earnings $2,200,000 Total...