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A company decides not to pay dividends to stockholders, but the company is requested to pay interest to debt holders. What does this mean about

A company decides not to pay dividends to stockholders, but the company is requested to pay interest to debt holders. What does this mean about the performance of the company?

  1. The company might merge with another company.

  2. The company has filed for bankruptcy.

  3. The company has performed poorly.

  4. The company's performance is very strong.

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