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TrickTanks is financed 40% with common equity, 20% with preferred equity and 40% with debt. Last year, TrickTanks made dividend payments to preferred shareholders of

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TrickTanks is financed 40% with common equity, 20% with preferred equity and 40% with debt. Last year, TrickTanks made dividend payments to preferred shareholders of $350,000 and interest payments to debt holders of $400.000. Common stockholders did not receive any dividends last year. This year, due to increased water needs, TrickTanks has excess cash of $1,000,000. Assuming all expenses have been paid, all positive NPV projects have been undertaken and no changes to capital structure, which group is most likely to receive an extra payout beyond what it is owed? Creditors Preferred stockholders Debtholders Common stockholders

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