What are the common stockholders residual claims to


1. Folic Acid Inc. has $37 million in earnings, pays $4.7 million in interest to bondholders, and $2.85 million in dividends to preferred stockholders.

What are the common stockholders’ residual claims to earnings?

2. Once additional funds needed are calculated, from which sources would you draw those funds? Which factors (ratios) will play a role in your decision process?

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Financial Management: What are the common stockholders residual claims to
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