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  1. business
  2. accounting
  3. planetary travel company has $162,000,000 in stock

Planetary Travel Company has $162,000,000 in stockholders equity. Common stock is $30,000,000 and the balance...

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Accounting

Planetary Travel Company has $162,000,000 in stockholders equity. Common stock is $30,000,000 and the balance is retained earnings. The firm has $320,000,000 in total assets and 4 percent of this value is in cash. Earnings for the year are $20,000,000 and are included in retained earnings.
What is the legal limit on current dividends?
Note: Do not round intermediate calculations. Input your answer in dollars, not millions (e.g., $1,234,000).
What is the practical limit based on liquidity?
Note: Do not round intermediate calculations. Input your answer in dollars, not millions (e.g., $1,234,000).
If the company pays out the amount in part b, what is the dividend payout ratio?
Note: Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.

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