Q.[3]
The Howe company stockholders’ equity account is as follows:
C.S (400,000 shares at $4 par ) $ 1,600,000
Paid_in capitalin ecess of par value 1000,000
Retain earnings 1,900,000
Total stockholders’ equity $4,500,000
The earnings available for common stockholders from this period’s operation are 100000 which have been included as part of $1.9 million of retain earnings
A … what is da maximum dividend
pr share that company can pay
b…if firm has 160000 in cash what is its largest per share it can pay wid out borrowing
c…..indicate the effect of an 80000 cash dividend on stockholders equity