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14 J SIllal (0) Assigned Media Question Help Dividend constraints Afirm has $700,000 in paid in capital, retained earnings of

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1- maximum dividend to common stock holders earnings available to common shareholders/no of common stock 24000/24000 1
2- Impact of a dividend of .91 on balance sheet cash would decrease by (24000*.91) 21840 and retained earning would decrease by 21840
3- if the company can not raise funds from the external sources in that no profit would be paid as dividend because in that case retained earning would be used as a source of financing.
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