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Dividend constraints. The Howe Compary's stockholders' equty account is as followi. . The earnings avalable for comonon stockhoiders from min periods operations are 5100,000 ,

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Dividend constraints. The Howe Compary's stockholders' equty account is as followi. . The earnings avalable for comonon stockhoiders from min periods operations are 5100,000 , which have been included as part of the $2.5millon rotained earnings. a. What is the masimum dividend per share that the frm can pay? (Assume that legal capital includes alf paid-in capital) b. If the firm tas $130,000 in cash, what is the largest per-hare dividend in can pay without bortowing? c. Indicate the accounts and changes, if any, that will result if the fem pays the dividends indicated in parts a and b. d. Indicate the effects of an $80.000 cash dividend on stockholders' equily. a. The maximum dividend per share that the firm can is 4 (Round to the newrest cont) b. If the firm has $130,000 in cash, the largest perethare dwident a can pay without borrowing in 5 (Round to the nescest cent) c. It the Arm pays the dikidends indicaled in part a, eash wil decrease by 5 (Round to the navest dotar) If the firmipays the dividends indicated in part a, reterned earnies will decrease bys (flound to the neareol dolar) If the frm pays the Evidende indicated in part b, cath will decresse by { (hound to the nearest dolar) It the firm pays the dividengs indicaled in part b. retained earings will decrease by 4 (Round fo the nearest dollar) d. Ni 550.000 cash dividend with caupe retained eamings will decrease ty 1 (ghound to the neareat dotar). Shockholder' equity wie decrease by sco.000 to f (Round be the nearet dotal) in cash, what is the largest per-share dividend it can pay without borrowing? ad changes, if any, that will result if the firm pays the dividends indicated in parts a and b. n $80,000 cash dividend on stockholders' equity. Data table ill decrease oy $80,00070$ (Rouncto ine nearest oollan.)

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