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Dividend limitation

• A bond covenant that restricts in some way the firm's ability to pay cash dividends.

 
 

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 Embedded terms in definition
 Bond covenant
Bond
Cash dividend
Cash
Dividends
 
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<< Dividend irrelevance theory Dividend or dividends >>

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Don't ever take a fence down until you know why it was put up. - Robert Frost (1874-1963)

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