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Question - Eugene Corporation issued 25,000 shares outstanding of 6%, $5 par value, cumulative preferred shares. Eugene purchased 5,000 shares of its preferred shares to remain in its treasury. In 2016 and 2017, no dividends were declared on preferred shares. In 2018, Eugene had a profitable year and decided to pay dividends to shareholders of both preferred and common shres.
Required - If Eugene has $75,000 available for dividends in 2018, how much could it pay to the common shareholders?
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