XYZ Co. has 100,000 shares of stock outstanding; total current assets is P2,050,000, P455,000 of which is cash; total current liabilities is P900,000. There is no outstanding dividends payable. Assuming XYZ Co. maintains a minimum current ratio of 2 and that the above accounts will remain unchanged except cash, what is the maximum dividends per share that XYZ Co. can pay in cash?

Answer rating: 100% (QA)

The current ratio is calculated as the ratio of total current assets to total current liabilities Th... View the full answer