What are the common stockholders residual claims

Reference no: EM13288743

Diploma Mills has $30 million in earnings, pays 4.25 million in interest to bondholders, and $2.95 million in dividends to preferred stockholders.

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

b. What are the common stock holders legal, enforceable claims to dividends?

Reference no: EM13288743

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