Which is the maximum dividend per share (DPS) that the firm can pay? (Assume
that legal capital includes all paid-in capital.)
If the firm has $160,000 in paid-in capital, what is the larger per-share dividend it
can pay without borrowing?
Indicate the accounts and charges, if any, that will result if the firm pays the divi-
dends indicated in parts a and b.
Indicate the effects of an $80,000 cash dividend on stockholder's equity.