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Suppose a company has a low-regular-and-extra dividend policy that demands dividends to be paid at the rate of 30% on earnings per share (EPS) for the first $4, 50% on the portion of EPS between $4 and $6, and 100% on the portion beyond $6.

The recent financial reports indicate that the company has $5.50 of EPS. What is the dividend amount according to the policy?

Financial Management, Finance

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