0.00 6-42 CHAPTER 14 Payout Policy 641 Dividend constraints The stockholders' equity account of Plastic Enterprises is as follows: P14-4 Common stock (280,000 shares at $3.50 par) Paid-in capital in excess of par Retained earnings 980,000 900,000 1,200,000 $3,080,000 Total stockholders' equity The earnings available for the common stockholders are $280,000 and are included in the $1,200,000 retained earnings. a. Calculate the maximum dividend per share that the firm can pay if the legal b. Calculate the maximum dividend per share that the firm can pay if the legal capi c. If Plastic Enterprises has $25,000 in cash, what is the largest per-share dividend the d. What is the purpose of capital impairment restrictions when developing a capital includes all paid-in capital. tal includes only the value of the common stock. firm can pay without borrowing, assuming legal capital includes all paid-in capital? dividend policy