P14-4 Dividend constraints Plastic Enterprises' stockholders' equity account is as follows: Common stock (280,000 shares at $3.50 par) $980,000 Paid-in capital in excess of par $900,000 Retained earnings $1,200,000 Total stockholders' equity $3,080,000 The earnings available for the common stockholders are $280,000 and are included as part of the $1,200,000 retained earnings. a. Calculate the maximum dividend per share that the firm can pay if the legal capital includes all paid-in capital. b. Calculate the maximum dividend per share that the firm can pay if the legal capital includes only the value of the common stock c. If Plastic Enterprises has $25,000 in cash, what is the largest per-share dividend it can pay without borrowing, assuming legal capital includes all paid-in capital? d. What the purpose of capital impairment restrictions when developing a dividend policy