If a typical firm reports a $20 Million dollars of retained earnings on its balance sheet, could its directors declare a $20 million dollar cash dividend without any qualms whatsoever?

a. Yes, retained earnings represents the amount of equity built up in the company.

b. Yes, retained earnings represents the amount of cash on hand.

c. No, retained earnings is a liability and therefore can not be used to pay dividends.

d. No, retained earnings, though an equity account does not reflect the firms ability to pay out cash in the form of dividends.