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If the company has 40 million shares outstanding and pays

General Manufacturing Company (GMC) pays out 50 percent of its net income as cash dividends to its shareholders once each quarter.

The company plans to do so again this year, during which GMC earned $100 million in net profits after tax. If the company has 40 million shares outstanding and pays dividends quarterly, what is the company's nominal dividend payment per share each quarter?

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Financial Management: If the company has 40 million shares outstanding and pays

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