Question 3: The HariIni Company Ltd's stockholders' equity account is as follows: Included as part of the $1.9 million retained earnings (stated above) is an amount of $100,000 which is earnings available for common stockbrokers from the operations of this period. a. Calculate the moximum dividend per share that the firm can pay? (Assume that legal capital includes all paid-in capital.) (5 marks) b. What is the largest per-share dividend it can pay without borrowing, if the firm has $160,000 in cash? (4 marks) c. If the firm pays the dividends as indicated in parts a and b above, state the accounts and the likely changes, if any. ( 4 marks) d. What is the effect of an $80,000 cash dividend on the stockholders' equity? (4 marks) Prge 2 of 5 e. If you were the CFO of Hariini Company, and you are contemplating a stock repurchase in the next 6 months. You are also aware of several methods that the company can use to reduce its current quarterly earnings, which can result in the stock price to fall just before the announcement of the proposed stock repurchase exercise. State the course of action that you would recommend to your CEO? If your CEO approaches you first to reduce the current quarter's earnings, what would be your likely response? (3 marks) Question 3: The HariIni Company Ltd's stockholders' equity account is as follows: Included as part of the $1.9 million retained earnings (stated above) is an amount of $100,000 which is earnings available for common stockbrokers from the operations of this period. a. Calculate the moximum dividend per share that the firm can pay? (Assume that legal capital includes all paid-in capital.) (5 marks) b. What is the largest per-share dividend it can pay without borrowing, if the firm has $160,000 in cash? (4 marks) c. If the firm pays the dividends as indicated in parts a and b above, state the accounts and the likely changes, if any. ( 4 marks) d. What is the effect of an $80,000 cash dividend on the stockholders' equity? (4 marks) Prge 2 of 5 e. If you were the CFO of Hariini Company, and you are contemplating a stock repurchase in the next 6 months. You are also aware of several methods that the company can use to reduce its current quarterly earnings, which can result in the stock price to fall just before the announcement of the proposed stock repurchase exercise. State the course of action that you would recommend to your CEO? If your CEO approaches you first to reduce the current quarter's earnings, what would be your likely response