The Barden Corporation has the following equity accounts on its balance sheet:
What is the maximum amount of dividends per share that may be paid by the Barden Corp. if the capital impairment provisions of state law are limited to the par value and the capital in excess of par accounts?
A) $59.28
B) $51.20
C) $60.53
D) $ 8.08

Question

The Barden Corporation has the following equity accounts on its balance sheet: 
What is the maximum amount of dividends per share that may be paid by the Barden Corp. if the capital impairment provisions of state law are limited to the par value and the capital in excess of par accounts?
A) $59.28 
B) $51.20 
C) $60.53 
D) $ 8.08

Quizplus · Accepted Answer

Solution:
DPS = $153.6/3 = $51.20

The Barden Corporation Has the Following Equity Accounts on Its