What are the common shareholders residual claims to earnings

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Reference no: EM13974541

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: EM13974541

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