A firm earns $60 billion in profits and pays $45 billion in dividends for the year. The firm has 3 billion shares of preferred stock and 9 billion shares of common stock.  The preferred stock is guaranteed a dividend of $5.00 per year. How much will they pay in dividends to the preferred stockhol

Managerial Economics: A Problem Solving Approach
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Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
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A firm earns $60 billion in profits and pays $45 billion in dividends for the year.

The firm has 3 billion shares of preferred stock and 9 billion shares of common stock.  The preferred stock is guaranteed a dividend of $5.00 per year.

How much will they pay in dividends to the preferred stockholders? 

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