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A Firm Has the Following Stockholders' Equity Balances: in States

Question 18

Multiple Choice

A firm has the following stockholders' equity balances: A firm has the following stockholders' equity balances: In states where the firm's legal capital is defined as the par value of its common stock, the maximum cash dividend the firm could pay is A) $3,600,000. B) $400,000. C) $3,200,000. D) $1,600,000. In states where the firm's legal capital is defined as the par value of its common stock, the maximum cash dividend the firm could pay is


A) $3,600,000.
B) $400,000.
C) $3,200,000.
D) $1,600,000.

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