What are the common stockholders residual claims to earnings

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Question: 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 stockholders' legal, enforceable claims to dividends?

Reference no: EM131792426

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