Common shareholders legal-enforceable claims to dividends

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Folic Acid Inc., has $20 million in earnings, pays $2.75 million in interest to bondholders, and $1.80 million in dividends to preferred shareholders.

a. What are the common shareholders’ residual claims to earnings?

b. What are the common shareholders’ legal, enforceable claims to dividends?

Reference no: EM131013831

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