What are the bondholders contractual claims to payment

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Reference no: EM13913306

Time Watch Co. has $46 million in earnings and is considering paying $6.45 million in interest to bond hloders and $4.35 million to preferred stockholders in dividends.

a. What are the bondholders' contractual claims to payment?

b. What are the preferred stockholders' immediate contractual claims to payment? What priviledge do they have?

Reference no: EM13913306

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