Reference no: EM132672287

Hanizah's Optical has a stockholders' equity account as shown below. The firm's common stock currently sells for RM20 per share.

Preferred Stock RM 500,000
Common Stock (2,000,000 shares @RM1 par) RM 2,000,000
Paid in capital excess of par RM10,000,000
Retained Earnings RM11,600,000
Total Stockholders' Equity RM24,100,000

Calculate:

Problem 1: What is the maximum dividend per share Hayley's Optical can pay? (Assume capital includes all paid-in capital.)

Problem 2: Recast the partial balance sheet (the stockholders' equity accounts) to show a 2 for 1 stock split of the common stock.

Problem 3: Recast the partial balance sheet (the stockholders' equity accounts) to show a cash dividend of RM1.50 per share