Wrecks inc has 20 million in earnings pays 275 million in, Financial Management

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Wrecks inc has 20 million in earnings pays 275 million in

Wrecks 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: Wrecks inc has 20 million in earnings pays 275 million in

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Financial Management: Wrecks inc has 20 million in earnings pays 275 million in

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