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What is the maximum dividend per share that Han Manufacturing can pay?

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Han Manufacturing Company has the stockholders? equity account shown below. The firm?s common stock currently sells for $50 per share.;Preferred stock $ 1,250,000;Common stock (5,000,000 shares @ $1 par) 5,000,000;Paid-in capital in excess of par 20,000,000;Retained earnings 30,000,000;Total stockholders? equity $56,250,000;a. What is the maximum dividend per share that Han Manufacturing can pay? (Assume legal capital includes par value and paid-in capital.);b. Recast the stockholders? equity accounts to show independently;1. A 2 for 1 common stock split.;2. A cash dividend of $3.50 per share.;3. A stock dividend of 10% on the common stock.;c. At what price would you expect the Han Manufacturing stock to sell after;1. The stock split?;2. The stock dividend?

 

Paper#25084 | Written in 18-Jul-2015

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