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?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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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