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    Principles of Managerial Finance
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    Exam 14: Payout Policy
  5. Question
    Since Lenders Are Generally Reluctant to Make Loans to a Firm
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Since Lenders Are Generally Reluctant to Make Loans to a Firm

Question 78

Question 78

True/False

Since lenders are generally reluctant to make loans to a firm to pay dividends, the firm's ability to pay cash dividends is generally constrained by the amount of excess cash available.

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