RJR Nabisco also had $10 billion in bonds outstanding at the time of the dividend increase in

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RJR Nabisco also had $10 billion in bonds outstanding at the time of the dividend increase in Problem 10. How would you expect the bonds to react to the announcement?

Why?

Reference from in problem 10.

RJR Nabisco, in response to stockholder pressure in 1996, announced a significant
increase in dividends paid to stockholders financed by the sale of some of its assets.

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