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:

Assets

Cash $ 369,000

Accounts receivable 843,000

Fixed assets 993,000

Total assets $ 2,205,000

Liabilities and Stockholders' Equity

Accounts payable $ 476,000

Long term payable 314,000

Common stock (285,000 shares at $1 par) 285,000

Retained earnings 1,130,000

Total liabilities and stockholders' equity $ 2,205,000

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.)

DIvidends per share:_________

a-2. Is this realistic?

Yes or NO?

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.)

Dividends per share:__________

c. Assume the firm earned an 24 percent return on stockholders equity last year. If the board wishes to pay out 50 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.)

Dividends per share:__________