Two publicly traded companies in the same industry are similar in all respects except one. Where Publicks

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Two publicly traded companies in the same industry are similar in all respects except one. Where Publicks has issued debt in the public markets (bonds), Privicks has never borrowed from any public source. In fact, it always uses private bank debt for its borrowing. Which firm might be marginally more inclined to have a more aggressive regular dividend payout than the other? Explain.
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Fundamentals of Corporate Finance

ISBN: 978-1118845899

3rd edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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