Donald's Inc. would like to declare a cash dividend. Partial

Donald's Inc. would like to declare a cash dividend. Partial financial information for Donald's Inc. is below.

Cash balance$52,000
Dividends payable$19,200
Retained Earnings$27,500
Common Shares$50,000
Shareholder's equity$77,500

What is the maximum cash dividend that Donald's Inc. can declare and pay given the above financial information?

Multiple Choice

  • None of the other alternatives are correct

  • $50,000

  • $77,500

  • $52,000

  • $58,300


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