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Foundations of Financial Management Block, Hirt, and Danielsen Proble 1 8 - 1 4 Obiectire: Cash dividend polien. table [ [ Student Name:,Allizon Thompeon
Foundations of Financial Management
Block, Hirt, and Danielsen
Proble
Obiectire: Cash dividend polien.
tableStudent Name:,Allizon ThompeonCourse Name:,FlNStudent ID:THCourse Number:,GNMEA
Phillip: Rock and Mud iz rrying to determine the moximum om ount of oset dividends it can pry this yoar.
Assume itz bolsnce sheet is as follows:
tabletableAssetsCashAccounts reccivableFixod AssetsTotsl Asots
Liabilities and Stockholders"
From a legal perspective, what i the moximum amount of dividends per shore the finm could pow? Is this resilistic?
b In terms of cash swailability, what is the moximum amount of dividenda per share the firm aould poy?
c Asaume the firm earned pereent return on stockholdersi equity laet year. If the borrd whethe to pay out percent of earningz in the form of dividend: how mueh will dividende per shane be
Round to two places to the right of the decimsl point.
Solution
Problee
Isstriections
Enter formuls: to calculate the requinemente of this problem.
From a legel perspective, whot iz the maximum amount of dividende por thane the firm could powe
Is this restiatie?
Moximum divids
c Assume the firm eprrned is puricent retunn on atochholdens' equity last year. If the board wishes to poy out pereent of earring: in the form of dividend:, how much will dividend: per shane be
Found to two places to the right of the decimal point,!
Stockholderel equity
Fisturn on squity
Dividande
Dividend pes thare
FORMULA
FOFMULA
FORMULA
FORMULA
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