ThefactorsinvolvedinsettingadividendpolicyincludeallofthefollowingEXCEPT
A. restrictivecovenantsinabondindenture.
B. growthprospects.
C. thelegalprohibitiononpayingdividendswhichexceedcurrentearnings.
D. capitalimpairmentrestrictions.
Answer:C
ThefactorsinvolvedinsettingadividendpolicyincludeallofthefollowingEXCEPT
A. restrictivecovenantsinabondindenture. B. growthprospects. C. thelegalprohibitiononpayingdividendswhichexceedcurrentearnings. D. capitalimpairmentrestrictions.