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Suppose a potential bondholder requires an indenture agreement to include a timit on dividend distributions by the bond's issuer and also a restriction on the
Suppose a potential bondholder requires an indenture agreement to include a timit on dividend distributions by the bond's issuer and also a restriction on the sale of the issuer's assets. In this case, the bondhoider is most micely concerned about: Mulipie Choice. shareholders earning a higher retum on their investment in the fim than the bondholders eam on their debt. shareholder claims being dilated. thareholers claiming all of the residud profits of the firm. increasing interest rotes. sharehoiders transferring firm assets to themselvet
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