Which One of These Actions by a Firm Is an Example

question 23

Multiple Choice

Which one of these actions by a firm is an example of milking the property? Assume the firm is in a period of financial distress.

• A)Repaying a bond that matured
• B)Paying the semiannual bond interest
• C)Paying an extra dividend
• D)Cutting a regular dividend
• E)Paying a regular dividend

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Definitions:

Sodium

A chemical element with symbol Na and atomic number 11, known for its role in nerve impulse transmission and muscle contraction.

Covalent Compound

A compound in which atoms are held together by covalent bonds; covalent compounds consist of molecules. Compare with ionic compound.

Methane

A colorless, odorless gas, CH4, that is the simplest alkane and a major component of natural gas, contributing to greenhouse gas emissions.

Potassium Chloride

A metal halide salt composed of potassium and chlorine, used in various applications including as a fertilizer, in medicine, and in food processing.