Lenders will sometimes impose dividend restrictions to:
A)prevent the corporation from paying out too much to stockholders.
B)try to limit available dividends.
C)prevent the corporation from paying out too much to other creditors.
D)ensure the lenders will receive more dividends than the stockholders.

Question

Quizplus · Accepted Answer

A lender imposes dividend restrictions because it doesn't want to lend money to a corporation and then have the corporation pay it out in dividends to stockholders.

Lenders Will Sometimes Impose Dividend Restrictions To