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    Fundamentals Of Corporate Finance Study Set 21
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    Exam 17: Dividends and Dividend Policy
  5. Question
    A Valid Reason for a Firm to Reduce or Eliminate
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A Valid Reason for a Firm to Reduce or Eliminate

Question 21

Question 21

True/False

A valid reason for a firm to reduce or eliminate its cash dividends is if the firm is on the verge of violating a bond restriction which requires a current ratio of 1.8 or higher.

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