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CED's capital structure consists only of common shares on which it does not pay dividends. XUX's capital structure includes common shares on which it does

CED's capital structure consists only of common shares on which it does not pay dividends. XUX's capital structure includes common shares on which it does not pay a dividend, and preferred shares with a fixed dividend. Both companies operate in a cyclical industry. How will changes in the business cycle affect the profitability of each company, all else being equal?

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