Your firm successfully issued new debt last year, but the debt carries covenants. Specifically, you can only pay dividends out of earnings made after the debt issue and you must maintain a minimum quick (acid-test) ratio

(Current AssetsInventory)/Current Liabilities

of 1.2. Your net income this year was $70.3 million. Your cash is $10.4 million, your receivables are $7.9 million, and your inventory is $4.6 million. You have current liabilities of $18.9 million. What is the maximum dividend you could pay (in cash and in stock) this year and still comply with your covenants?

Please show work, thank you! Will rate answer if correct (: