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Financial Management — Business Studies STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceBusiness StudiesFinancial Management1 Mark
Question
How does contractual constraints affect dividend decision of a company?
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Answer

Generally, the lender impose certain restrictions on the company on payment of dividend, while granting loan to it. These contractual constraints have to be adhered to by the company.

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