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a firm has earnings of $500 million of which 40% will be paid out to investors. the firm has $2.5 billion in debt with an
a firm has earnings of $500 million of which 40% will be paid out to investors. the firm has $2.5 billion in debt with an interest rate of 6%.The firm also has payments totaling $20 million promised to preferred equity shareholders. If the firm has 50 common shares outstanding, what will be the dividend per share received by common shareholders?
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