- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 16. Credit Analysis for Corporate Issuers
- Subject 1. Assessing Corporate Creditworthiness
CFA Practice Question
The restricted payments covenant is meant to protect creditors by limiting the payments to ______.
B. shareholders
C. junior or subordinated debt-holders
A. banks
B. shareholders
C. junior or subordinated debt-holders
Correct Answer: B
User Contributed Comments 1
| User | Comment |
|---|---|
| johntan1979 | Negative covenant... limit dividend payouts |