e HomeDividend constraints The Howe Company's stockholders' equity account is as follows: . The earnings available for common stockholders from this period'sase Options operations are $100,000, which have been included as part of the $1.6 million retained earnings.a. What is the maximum dividend per share that the firm can pay? (Assume that legal capital includes all paid-in capital.)b. If the firm has $160,000 in cash, what is the largest per-share dividend it can pay without borrowing?c. Indicate the accounts and changes, if any, that will result if the firm pays the dividends indicated in parts a and b.d. Indicate the effects of an $80,000 cash dividend on stockholders' equity.dara. The maximum dividend per share that the firm can is $(Round to the nearest cent.)b. If the firm has $160,000 in cash, the largest per-share dividend it can pay without borrowing is $(Round to the nearest cent.)c. If the firm pays the dividends indicated in part a, cash will decrease by $(Round to the nearest dollar.)If the firm pays the dividends indicated in part a, retained earnings will decrease by $(Round to the nearest dollar.)If the firm pays the dividends indicated in part b, cash will decrease by $(Round to the nearest dollar.)If the firm naue the dvidende indicated in nart h ratained earninge wrill decreaee hy/Dund tn the noarnet dollar 1Enter your answer in each of the answer boxes.P Type here to searchinser Tor common stockholdewhich have been included as part of the $1.6 million retained earnings.dividend per share that the firm can pay? (Assume that legal capital includes all paid-in capital.)00 in cash, what is the largest per-share dividend it can pay without borrowing?and changesan $80,000Data Tablend per share00 in cash, thCommon stock (400,000 shares at $7 par)Paid-in capital in excess of parRetained earnings$2,800,0002,000,0001,600,000vidends indicaTotal stockholders' equity$6,400,000ends indicatedends indicatedPrintDoneende indicaterach of the answer boxes.

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Dividend constraints The Howe Company's stockholders' equity account is as follows: . The earnings available for common stockholders from this perio operations are $100,000, which have been included as part of the $1.6 million retained earnings. a. What is the maximum dividend per share that the firm can pay? (Assume that legal capital includes all paid-in capital.) b. If the firm has $160,000 in cash, what is the largest per-share dividend it can pay without borrowing? c. Indicate the accounts and changes, if any, that will result if the firm pays the dividends indicated in parts a and b.

Dividend constraints The Howe Company's stockholders' equity account is as follows: . The earnings available for common stockholders from this perio operations are $100,000, which have been included as part of the $1.6 million retained earnings. a. What is the maximum dividend per share that the firm can pay? (Assume that legal capital includes all paid-in capital.) b. If the firm has $160,000 in cash, what is the largest per-share dividend it can pay without borrowing? c. Indicate the accounts and changes, if any, that will result if the firm pays the dividends indicated in parts a and b.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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