What is the largest dps it can pay without borrowing

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The shareholders' funds of XYZ Ltd for the year ending March 31 are as follows: The earnings available for equity shareholders from this period's operations are Rs 1,50,000, which have been included as part of the Rs 3,00,000 retained earnings. (1) What is the maximum dividend per share (DPS) the firm can pay? (ii) If the firm has Rs 60,000 in cash, what is the largest DPS it can pay without borrowing? (ID) Indicate what accounts, if any, will be affected if the firm pays the dividends indicated in (it) above?

12% Preference share capital Equity share capital (Rs 100 each)

Share premium

Retained earnings

Rs 1,00,000

40,000

8,40,000

Reference no: EM132783199

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