A firm earns $3550 million in profits and pays $2480 million in dividends for the year. The firm has 175 million shares of preferred stock and 525 million shares of common stock.  The preferred stock is guaranteed a dividend of $4.50 per year and costs $52 per share.  The common stock costs $39 per share.  How much will they pay in dividends per share to the common stockholders? Round to 2 decimal places.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A firm earns $3550 million in profits and pays $2480 million in dividends for the year.

The firm has 175 million shares of preferred stock and 525 million shares of common stock.  The preferred stock is guaranteed a dividend of $4.50 per year and costs $52 per share.  The common stock costs $39 per share. 

How much will they pay in dividends per share to the common stockholders?

Round to 2 decimal places.

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