Glasgow Co. Statement of Retained Earnings for 2015 ($ millions) Retained earnings brought forward at January 1, 2015 $250 Net income for 2015 500 $750 Dividend paid 250 Retained earnings at December 31, 2015 $500 Glasgow Co. 2015 Balance Sheet ($ millions) Current assets Cash $ 50 Accounts receivable 750 Inventory 200 Total current assets Long-term assets Cost $1,500 Accumulated depreciation (500) Total assets $1,000 1,000 $2,000 Current liabilities Trade creditors Short-term bank loans Total current liabilities Long-term liabilities Total liabilities $ 200 100 $ 300 500 $ 800 Common shares (1 million) Retained earnings Total shareholders' equity Total liabilities & shareholders' equity $ 700 500 1,200 $2.000 7. Using the financial statements given, answer the following: (a) If there were 20 million common shares in issue, what was the dividend per share? (b) Calculate the following ratios: (1) Dividend payout ratio (ii) Dividend cover ratio (c) What is the maximum dividend that Glasgow Co. could have legally paid in 2015? (d) What is the maximum dividend that Glasgow Co. could have paid in 2015 without recourse to additional borrowing? (e) If Glasgow Co. wanted to invest $100 million in a plot of agri- cultural land, how could it finance the investment? (1) If Glasgow Co. wanted to invest $800 million in a plot of agri- cultural land, how could the company finance it? (9) As a bank lending officer, would you lend Glasgow Co. $10 million to buy an office building? (h) As a bank lending officer, would you lend Glasgow Co. $500 million to invest in a new product that the company had devel- oped and wanted to put on the market? If yes, under what conditions