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TrickTanks Inc is financed 40% with equity and 60% with debt. Last year, TrickTanks paid $17,000 in interest payments to debt holders and $5,000 in
TrickTanks Inc is financed 40% with equity and 60% with debt. Last year, TrickTanks paid $17,000 in interest payments to debt holders and $5,000 in dividends to common stockholders. Due to a fire at the warehouse, gross profits are only expected to be $18,000. Assuming TrickTanks has no other sources of cash and no changes to capital structure, which group(s) isfare) most likely to receive a lower payout than last year? Common stockholders Debtholders Both groups will receive a lower payout Neither group will receive a lower payout
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