What is the practical limit based on, Financial Management

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What is the practical limit based on

Carniege mellon and produce co has 120.000.000 in stocholders equity forty millions dollars is listed as common stock and the balance is in retained earnings.

The film has 250.000.000 in total assets and 3 percent of this value is in cash earnings for the year are 20.000.000 and are included in retained earnings

what is the practical limit based on liquidity?

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