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(I)Restrictive Covenants Often Limit the Amount of Dividends That Firms

Question 72

Multiple Choice

(I) Restrictive covenants often limit the amount of dividends that firms can pay the stockholders.
(II) Most corporate indentures include a call provision,which states that the issuer has the right to force the holder to sell the bond back.


A) (I) is true, (II) false.
B) (I) is false, (II) true.
C) Both are true.
D) Both are false.

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