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ABC Corporation has a total debt of $12,240,000 and their cash balance is equal to 10% of their total assets. The shareholders' equity section

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ABC Corporation has a total debt of $12,240,000 and their cash balance is equal to 10% of their total assets. The shareholders' equity section of the balance sheet of the ACC Corp. is as follows: Common stock Retained earnings Total Shareholder's Equity $5,000,000 $15.760.000 $20,760,000 Required: Calculate the following A) What is the current legal limit on current dividends? B) What is the practical limit based on liquidity?

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