Phillips Rock and Mud is trying to determine the maximum amount of cash dividends it can pay this year. Assume its balance sheet is as follows:

AssetsCash$410,000

Accounts receivable806,000

Fixed assets1,007,000

Total assets$2,223,000

Liabilities and Stockholders' Equity

Accounts payable $542,000

Long term payable307,000

Common stock (305,000 shares at $2 par)610,000

Retained earnings764,000

Total liabilities and stockholders' equity$2,223,000

a-1.From a legal perspective, what is the maximum amount of dividends per share the firm could pay?(Do not round intermediate calculations and round your answer to 2 decimal places.)

a-2.Is this realistic?

YesNo

b.In terms of cash availability, what is the maximum amount of dividends per share the firm could pay?(Do not round intermediate calculations and round your answer to 2 decimal places.)

c.Assume the firm earned an 15 percent return on stockholders' equity last year. If the board wishes to pay out 40 percent of earnings in the form of dividends, how much will dividends per share be?(Do not round intermediate calculations and round your answer to 2 decimal places.)