Dividend constraints Arrn has $750,000 in paid-in capital, retained eamings of $43,000 (including the current year's earnings), and 27,000 shares of common stock outstanding. in the current year, it has $32000 of eamings available for the common stockholders. a. What is the most the lm can pay in cash dividends to each common stockholder? (Assume that legal capital includes 90 paid-in capital.) b. What effect would a cash dividend of $1.29 per share have on the fin'n's balance sheet entries? c. lfthe tinn cannot raise any new funds from external sources. what do you consider the key constraint with respect to the magnitude of the tirm's dividend payments? a. If legal capital is assumed to include all paidin capital. the most the rm can pay in cash dividends to each common stockhoider is S _ (Round to the nearest cent.) b. It the rm pays a cash dividend of $1.29 per share, its cash will decrease by $ . [Round to the nearest dollar.) if the firm pays a cash dividend of $1.29 per share. its retained earnings will decrease by $ . {Round to the nearest dollar.) c. If the rm cannot raise any new funds from external sources. which of the following accounts is the key constraint with resoed to the magnitude ofthe rm's dividend payments? {Select the best answer below.) 0 A. Cash 0 B. Retained eamings O C. Number of outstanding shares 0 D. Paidin capital