A firm earns $895 million in profits and pays $626 million in dividends for the year. The

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A firm earns $895 million in profits and pays $626 million in dividends for the year.

The firm has 135 million shares of preferred stock and 390 million shares of common stock. The preferred stock is guaranteed a dividend of $1.30 per year and costs $32 per share. The common stock costs $29 per share.

What is the dividend yield for the preferred stock? (Round to 1 decimal place.)

Related Book For answer-question

Foundations of Finance The Logic and Practice of Financial Management

ISBN: 978-0132994873

8th edition

Authors: Arthur J. Keown, John D. Martin, J. William Petty

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Posted Date: May 07, 2022 03:41 AM

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A firm earns $895 million in profits and pays $626 million in dividends for the year. The

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Foundations of Finance The Logic and Practice of Financial Management

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