Dividend constraints A firm has $$800,000$ in paid$-$in capital, retained earnings of $$43,000($including the current year's

earnings$),$ and $23,000$ shares of common stock outstanding. In the current year, it has $$32,000$ of earnings.

a$.$ What is the most the firm can pay in cash dividends on a per$-$share basis? $($Assume that legal capital includes

all paid$-$in capital.$)$

b$.$ What effect would a cash dividend of $$1\mathrm{.}18$ per share have on the firm's balance sheet entries?

c$.$ If the firm cannot raise any new funds from external sources, what do you consider the key constraint with respect to

the magnitude of the firm's dividend payments?