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A firm that must pay $2,000,000 in preferred dividends has $3,000,000 available for preferred and common dividends. It has 400,000 shares of common stock outstanding,

A firm that must pay $2,000,000 in preferred dividends has $3,000,000 available for preferred and common dividends. It has 400,000 shares of common stock outstanding, and a .4 dividend payout ratio. The firm.s dividend per common share is

a. $1.00

b. $1.50

c. $5.00

d. $7.50

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