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Stalla Credit Analysis - Stock Dividend Question
why is Stalla saying that the payment of stock dividends does not involve a cash outflow?
For example, in the Stalla book page 14-8, it says “payment of stock dividends or even stock splits, however, is seldom restricted [in debt covenants] because they do not involve any cash outflow.
then, the CFAI text states goes to talk about that “limitations on dividend payments and stock repurchases may be included in indentures”. page 178 of book 5 (last paragraph).
last time i checked dividends are paid with cash, cash that can no longer be used to service debt. |
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发表于 2013-4-12 22:33
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