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Basic Question 6 of 9

The restricted payments covenant is meant to protect creditors by limiting the payments to ______.

A. banks
B. shareholders
C. junior or subordinated debt-holders
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User Contributed Comments 1

User Comment
johntan1979 Negative covenant... limit dividend payouts
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I used your notes and passed ... highly recommended!
Lauren

Lauren

Learning Outcome Statements

describe the qualitative and quantitative factors used to evaluate a corporate borrower's creditworthiness

CFA® 2025 Level I Curriculum, Volume 4, Module 16.