What is maximum cash dividend that Donald Inc can declare

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Question - Donald's Inc. would like to declare a cash dividend. Partial financial information for Donald's Inc. is below.

Cash balance $52,000

Dividends payable $19,200

Retained Earnings $27,500

Common Shares $50,000

Shareholder's equity $77,500

What is the maximum cash dividend that Donald's Inc. can declare and pay given the above financial information?

Reference no: EM132921948

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