What is the maximum amount that beta corporation can pay

Assignment Help Financial Management

Reference no: EM131317428

Beta Corporation has the following shareholders' equity accounts:

Common stock at per	$5,000,000
Paid-in capital in excess of par	2,000,000
Retained earnings	25,000,000
Total stockholder's equity	$32,000,000

a. What is the maximum amount that Beta Corporation can pay in cash dividends, without impairing its legal capital, if it is headquartered in a U.S. state where capital is defined as the par value of common stock?

b. What is the maximum amount that Beta Corporation can pay in cash dividends, without impairing its legal capital, if it is headquartered in a U.S. state where capital is defined as the par value of common stock, plus paidin capital in excess of par?

Reference no: EM131317428

Questions Cloud

How many depth-first presentations of ow graph are there : How many other depth-first presentations of this ow graph are there? Remember, order of children matters in distinguishing depth-first presentations.

How are fixed dividends used as a bonding mechanism : How are fixed dividends used as a bonding (commitment) mechanism by managers of firms with dispersed ownership structures and large amounts of free cash flow?

The total initial investment or cash outflow at time zero : Your company plans to purchase a machine worth P250,000 which will be depreciated over five years using straightline method. There will be no salvage value. An installation cost of P50,000 is required to make the new machine operational. How much is ..

Establish emergency operation center with multi-jurisdiction : Establish an Emergency Operations Center with a multi-jurisdictional, multi-agency, multi-level staff that combines the different needs of the community and infrastructure with coordinated command and control.

What is the maximum amount that beta corporation can pay : What is the maximum amount that Beta Corporation can pay in cash dividends, without impairing its legal capital.

Percent of euro-area gdp : Why did the sovereign debt problem of Greece- a country that accounts for less than 2 percent of euro-area GDP - threaten the banking system throughout the euro area?

Accepted with a discount rate : Cash flows from both projects are given in the following table. What are their discounted payback periods, and which will be accepted with a discount rate of 8 percent?

Reduce a complete directed graph of n nodes : Show that when you apply node splitting to a nonreducible ow graph, and then perform T1-T2 reduction on the resulting split graph, you wind up with strictly fewer nodes than you started with.

Make improvements in its working capital management : The company wants to make improvements in its working capital management. At present, the firm has credit sales of P1,200,000, the collection period is 60 days, and the cost is 80% of the sales price. Compute the (a) Average Accounts Receivale and (b..

User Account

All Pages