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What are common stockholders residual claims to earnings

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Reference no: EM132497007

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

Question a. What are the common stockholders' residual claims to earnings?

Question b. What are the common stockholders' legal, enforceable claims to dividends?

Reference no: EM132497007

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