In Europe, why do most bank loans include restrictions on dividend payments during the amortization of the
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In Europe, why do most bank loans include restrictions on dividend payments during the amortization of the loans? Is this restriction appropriate in the case of small firms?
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Restrictions on dividend payments often referred to as dividend covenants are commonly included in bank loan agreements across Europe and other regions These restrictions are designed to protect the i...View the full answer
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Related Book For
Foundations Of Finance
ISBN: 9781292155135
9th Global Edition
Authors: Arthur J. Keown, John D. Martin, J. William Petty
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