Why might a loan agreement limit or prevent the payment of dividends by the borrower?

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Financial Accounting A Critical Approach

ISBN: 978-1259066528

4th edition

Authors: John Friedlan

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Question Posted: Feb 26, 2015 11:53 AM

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Why might a loan agreement limit or prevent the payment of dividends by the borrower?

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Lenders wish to limit the risk that there may not be sufficient assets to repay them in the c...View the full answer

Financial Accounting A Critical Approach

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