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 year and costs $32 per share.  The common stock costs $29 per share.  What is the dividend yield

Managerial Accounting: The Cornerstone of Business Decision-Making
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Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
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Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 55E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...
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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 year and costs $32 per share.  The common stock costs $29 per share. 

What is the dividend yield for the common stock?

Enter your response as a percent and do not include the percent sign.  Round to 1 decimal place. 

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