Diploma Mills has $30 million in earnings, pays $4.25 million in interest to bondholders, and $2.95 million
Question:
Diploma Mills has $30 million in earnings, pays $4.25 million in interest to bondholders, and $2.95 million in dividends to preferred shareholders.
a. What are the common shareholders' residual claims to earnings?
b. What are the common shareholders' legal, enforceable claims to the dividends?
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Related Book For 
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
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