On January 3 of 2019, XYZ convinces a hedge fund to loan it $1 million dollars, which XYZ intends to immediately pay out to its shareholders as a dividend. The loan carries an interest rate of 15 percent. All interest and principal on the loan is due and payable in one lump sum in two years. Can XYZ legally pay the contemplated dividend? Assuming it can, list the corporate law steps it must take to do so.

Answer rating: 100% (QA)

Whether XYZ can legally pay the contemplated dividend depends on various factors including the laws ... View the full answer