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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? a. $15.54 b. $31.08 c. $34.28 d. $3.20

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? a. $15.54 b. $31.08 c. $34.28 d. $3.20

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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which one is correct please confirm?

QUESTION 34

  1. 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?

      a.
    $15.54
      b.
    $31.08
      c.
    $34.28
      d.
    $3.20
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