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Which of the Following Is NOT a Common Bondholder Covenant

Question 52

Multiple Choice

Which of the following is NOT a common bondholder covenant?


A) Dividends cannot be paid unless there is sufficient cash to cover the next coupon payment.
B) Dividends may be prohibited above a certain percentage of current earnings.
C) If the firm has insufficient cash to cover required coupon payments,shareholders will pay interest directly from their own accounts on a pro rata basis.
D) All of the above are common bondholder covenants.

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