Fotobeno is presently generating earnings available to common shareholders of $7.25 per share.The firm's income tax rate is 40%.Fotobeno is paying a dividend to the preferred shareholders of $2.10 per share.The firm's dividend payout ratio on common share is 20%.What is the amount per share that Fotobeno will pay in dividends to common shareholders?
A)$0.58
B)$1.45
C)$3.12
D)$0.42
E)$2.20

Question

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The Answer of Fotobeno is presently generating earnings available to common shareholders of $7.25 per share.The firm's income tax rate is 40%.Fotobeno is paying a dividend to the preferred shareholders of $2.10 per share.The firm's dividend payout ratio on common share is 20%.What is the amount per share that Fotobeno will pay in dividends to common shareholders?
A)$0.58
B)$1.45
C)$3.12
D)$0.42
E)$2.20

Fotobeno Is Presently Generating Earnings Available to Common Shareholders of $7.25