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Which One of These Actions by a Firm Is an Example

Question 10

Multiple Choice

Which one of these actions by a firm is an example of milking the property? Assume the firm is in a period of financial distress.


A) Repaying a bond that matured
B) Paying the semiannual bond interest
C) Paying an extra dividend
D) Cutting a regular dividend
E) Paying a regular dividend

Correct Answer:

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