Folic acid inc has 20 million in earnings pays 275 million, Financial Management

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Folic acid inc has 20 million in earnings pays 275 million

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

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Financial Management: Folic acid inc has 20 million in earnings pays 275 million

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Financial Management: Folic acid inc has 20 million in earnings pays 275 million

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