Solved: Common stockholders residual claims to earnings, Business Law and Ethics

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Common stockholders residual claims to earnings

Question: Folic Acid, Inc. has $20 million in earnings, pays $2.75 in interest to bondholders, and $1.80 million to 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?

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Business Law and Ethics: Common stockholders residual claims to earnings

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