The commercial loan officers did not list the dividend payout ratio as a highly significant ratio, but they did indicate that the dividend payout ratio appeared frequently in loan agreements Speculate on the reason for this apparent inconsistency ...

The dividend payout ratio does not primarily indicate liquidity debt or prof ...

The commercial loan officers did not list the dividend payout ratio as a highly significant ratio, but

Question:

The commercial loan officers did not list the payout ratio as a highly significant ratio, but they did indicate that the payout ratio appeared frequently in loan agreements. Speculate on the reason for this apparent inconsistency.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...