Ashkenazi Companies has the following stockholders equity account: Common stock (350,000 shares at $3 par) .....$1,050,000 Paid-in

Question:

Ashkenazi Companies has the following stockholders’ equity account:

Common stock (350,000 shares at $3 par) .....$1,050,000

Paid-in capital in excess of par ..........2,500,000

Retained earnings................750,000

Total stockholders’ equity..........$4,300,000

Assuming that state laws define legal capital solely as the par value of common stock, how much of a per-share dividend can Ashkenazi pay? If legal capital were more broadly defined to include all paid-in capital, how much of a per-share dividend could Ashkenazi pay?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...