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. What is the dividends per share for the common stockholders?

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. What is the dividends per share for the common stockholders?

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter12: Investing In Stocks And Bonds

Section: Chapter Questions

Problem 4FPE: The Castle Company recently reported net profits after taxes of $15.8 million. It has 2.5 million...

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Question

12:09
( Notes
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.
What is the dividends per share for the common
stockholders?

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