Question
Blanket Company has paid quarterly dividends every quarter for the past 15 years. Lately, slowing sales have created a cash crunch for the company. While
Blanket Company has paid quarterly dividends every quarter for the past 15 years. Lately, slowing sales have created a cash crunch for the company. While the company still has positive retained earnings, the retained earnings balance is close to zero. Should the company borrow to continue to pay dividends. Why or why not?
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Financial Accounting
Authors: Kermit D. Larson, Paul B. W. Miller
5th Edition
0256091935, 978-0256091939
