Question 5: A bank has estimated that its net income for the year is $2 million with 500,000 outstanding shares of stock. It has estimated that its Common Equity Tier 1 (CET1) ratio is 6.5%. Its normal dividend payout ratio is 75%. Under the capital conservation buffer requirements of 2016, what is the maximum dividend it can pay on a per share basis? Since this is on a per share basis show you answer out to two decimals in the x.xx format enter $5.65 as 5.65