Phillip

Phillips Rock and Mud is trying to determine the maximum amount of cash dividends it can pay this year. Assume its balance sheet is as follows: Assets Cash Accounts receivable Fixed assets $ 396,000 802,000 1,040,000 Total assets $ 2,238,000 Liabilities and Stockholders' Equity Accounts payable Long term payable Common stock (275,000 shares at $2 par) Retained eamings $ 514,000 341,000 550,000 833,000 Total liabilities and stockholders' equity 2,238,000 a-1. From a legal perspective, what is the maximum amount of dividends per share the firm could pay? (Do not round intermediate calculations and round your answer to 2 decimal places.) Dividends per share