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Peters, Inc. wants to find out the maximum amount of cash dividends it can pay this year. The company has 250,000 shares outstanding currently. Its
Assets
Cash $ 412,500
Accounts Receivable 900,000
Fixed Assets 987,500
$2,300,000
Liabilities and Shareholders’ Equity
Accounts Payable $ 445,000
Long-term Payable 280,000
Common Stock 600,000
$2,300,000
What is the highest amount of dividends the firm could pay from a legal perspective?
What is the maximum amount of dividends per share the firm could pay in terms of cash availability,?
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