Question
A firm's ability to pay dividends may be restricted by Blank______.
Multiple choice question.
stock covenants
social constraint
covenants in a bond indenture
investment strategies of the firm's stockholders
Multiple choice question.
stock covenants
social constraint
covenants in a bond indenture
investment strategies of the firm's stockholders
Answers
GPT-4o mini
The correct answer is **covenants in a bond indenture**.
Covenants in a bond indenture can place restrictions on a firm's ability to pay dividends to ensure that the company maintains a certain level of financial stability and can meet its debt obligations.
Covenants in a bond indenture can place restrictions on a firm's ability to pay dividends to ensure that the company maintains a certain level of financial stability and can meet its debt obligations.