Inkle, Inc. has $200,000 of 10% bonds outstanding (which pay $20,000 interest) and $100,000 of 12% preferred stock (which pay $12,000 dividends)

Assume that Inkle's earnings in the upcoming year will be either $50,000 or $100,000. Given these two possibilities, common stockholders' share of earnings will be either ________ or ________.
A)

$38,000; $88,000
B)

$30,000; $68,000
C)

$18,000; $68,000
D)

$18,000; $88,000

C

Business

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Indicate whether the statement is true or false

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