Question
WPI Inc. has the following current equity accounts on its balance sheet: Common stock ($2.50 par, 500,000 shares) $ 1,250,000 Contributed capital in excess of
WPI Inc. has the following current equity accounts on its balance sheet:
| Common stock ($2.50 par, 500,000 shares) | $ 1,250,000 |
| Contributed capital in excess of par | $10,000,000 |
| Retained earnings | $15,540,000 |
| Total | $26,790,000 |
If WPI earned $3.20 per share this year, what is the maximum dividend per share that WPI may pay if the state capital impairment provisions are limited to the par value and the contributed capital in excess of par accounts?
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Handbook Of Hedge Funds
Authors: François-Serge Lhabitant
1st Edition
0470026634, 978-0470026632
