Why might corporate creditors want to include covenants that restrict dividend payouts and share repurchases? A) To

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Why might corporate creditors want to include covenants that restrict dividend payouts and share repurchases?

A) To eliminate the signaling that comes from share repurchases or dividends

B) To mitigate the possibility that shareholders will divert funds to themselves to the potential detriment of creditors

C) Because dividends and share repurchases don't have tax consequences for the corporation while interest payments on borrowings do

Posted Date: May 18, 2024 07:13 PM

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Why might corporate creditors want to include covenants that restrict dividend payouts and share repurchases? A) To

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