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A firm earns $895 million in profits and pays $626 million in dividends for the year. The firm has 135 million shares of preferred stock and 390 million shares of common stock. The preferred stock is guaranteed a dividend of $1.30 per yer and costs $32 per share. The common stock costs $29 per share. What is the dividend per share for the common stock?

A firm earns $895 million in profits and pays $626 million in dividends for the year. The firm has 135 million shares of preferred stock and 390 million shares of common stock. The preferred stock is guaranteed a dividend of $1.30 per yer and costs $32 per share. The common stock costs $29 per share. What is the dividend per share for the common stock?

EBK CFIN
EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter11: The Cost Of Capital
Section: Chapter Questions
Problem 4PROB
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12:07 < Notes 12. A firm earns $895 million in profits and pays $626 million in dividends for the year. The firm has 135 million shares of preferred stock and 390 million shares of common stock. The preferred stock is guaranteed a dividend of $1.30 per yer and costs $32 per share. The common stock costs $29 per share. What is the dividend per share for the common stock? !!! O
Transcribed Image Text:12:07 < Notes 12. A firm earns $895 million in profits and pays $626 million in dividends for the year. The firm has 135 million shares of preferred stock and 390 million shares of common stock. The preferred stock is guaranteed a dividend of $1.30 per yer and costs $32 per share. The common stock costs $29 per share. What is the dividend per share for the common stock? !!! O
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