XYZ Company has $967,000 in paid-in capital, retained earnings of $57,950 (including the current years earnings), and 30,500 shares of common stock outstanding. In the current year, it has $34,000 of earnings available for the common stockholders. XYZ is a single product company, selling 250,000 products per year. Each product has a variable operating cost of $3.75 and sells for $4.15. Fixed operating costs are $66,000. XYZ turns over its inventory six times each year, has an average payment period of 65 days, and has an average collection period of 40 days.

b.Assuming that legal capital includes all paid-in capital, what is the most the XYZ Company can pay in cash dividends to each common stockholder?