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Hubbard Heaters Inc. is financed 30% with common equity, 30% with preferred equity and 40% with debt. Total payments made to these financiers last year
Hubbard Heaters Inc. is financed 30% with common equity, 30% with preferred equity and 40% with debt. Total payments made to these financiers last year was $500,000. This year, due to unseasonably cold temperatures, Hubbard has excess cash of $1,000,000. Assuming all expenses have been paid and all positive NPV projects have been undertaken, which group is most likely to receive an extra payout beyond what it is owed?
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