A company has $679 million dollars in common equity. For the risk the company represents, shareholders expect, a return of 10% on this investment. Over the past year, the company earned a net income of $92 million. It paid preferred shareholders a preferred dividend of $14 million. 

How satisfied would the common shareholders be with the profit?

Answer rating: 100% (QA)

To determine how satisfied common shareholders would be with the profit we need to calculate the re... View the full answer