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 $386,000 Accounts receivable 836,000 Fixed Assets 1,048,000 Total Assets $2,270,000 Liabilities and Stockholders Equity Accounts payable $459,000 Long-term payable 371,000 Common stock (250,000 shares at $2 par) 295,000 Retained earnings 1,145,000 Total liabilities and stockholders' equity $2,270,000 a. From a legal perspective, what is the maximum amount of dividends per share the firm could pay? Is this realistic? b. In terms of cash availability, what is the maximum amount of dividends per share the firm could pay? c. Assume the firm earned 18 percent return on stockholders equity last year. If the board wishes to pay out 50 percent of earnings in the form of dividends, how much will dividends per share be? (Round to two places to the right of the decimal point.) Solution Problem 18-14 Instructions Enter formulas to calculate the requirements of this problem. a. From a legal perspective, what is the maximum amount of dividends per share the firm could pay? FORMULA Is this realistic? b. In terms of cash availability, what is the maximum amount of dividends per share the firm could pay? Maximum dividend FORMULA c. Assume the firm earned 18 percent return on stockholders equity last year. If the board wishes to pay out 80 percent of earnings in the form of dividends, how much will dividends per share be? (Round to two places to the right of the decimal point.) Stockholders' equity FORMULA Return on equity FORMULA Dividends FORMULA Dividend per share FORMULA Please provide the Excel formulas for the solutions. Thank you