WPI Inc. has the following current equity accounts on its balance sheet:
If WPI earned $3.20 per share this year, what is the maximum dividend per share that WPI may pay if the state capital impairment provisions are limited to the par value and the contributed capital in excess of par accounts?
A) $3.20
B) $31.08
C) $34.28
D) $15.54

Question

WPI Inc. has the following current equity accounts on its balance sheet: 
If WPI earned $3.20 per share this year, what is the maximum dividend per share that WPI may pay if the state capital impairment provisions are limited to the par value and the contributed capital in excess of par accounts?
A) $3.20 
B) $31.08 
C) $34.28 
D) $15.54

Quizplus · Accepted Answer

Solution:
DPS = $15,540,000/500,000 = $31.08

WPI Inc Has the Following Current Equity Accounts on Its Balance