A condition of terms in a lending arrangement whereby the company's ability to pay dividends from its earnings is limited and shareholder dividends are subordinated to debt payments owed the lending institution. In some dividend tests, dividend payments are allowed when a company's earnings reaches a certain threshold.
Related information about dividend test:
- Dividend Test - Financial Dictionary - The Free Dictionary
A provision in some lending agreements where the borrower is a company that forbids or restricts the borrower's ability to make dividends payments to ...
- What is dividend test? definition and meaning
Definition of dividend test: A condition of terms in a lending arrangement whereby the company's ability to pay dividends from its earnings is limited and ...
- BenefitsLink Message Boards > Failure of dividend test
In anything I can find regarding the dividend test not passing, the fix is shown as taking the needed shares from those released by the ...
- 3O2(b) - Brigham Young University
tained the same "essentially equivalent to a dividend" test pre- viously found in section 115(g) of the 1939 Code. Subsections. 302(b)(2)-(4) of the new provision ...
- Dividend Watch: Textron Fails Dividend Test of Conglomerates (TXT ...
Apr 27, 2011 ... Textron Inc. (NYSE: TXT) is one of those companies that is categorized as a conglomerate by most financial analysis sector groupings. It is not ...
- Proposed changes to dividend rules - BDO Australia
Dividend test – s254T; Parent entity financial statements; Changing financial years under ... The new dividend test in s254T requires that assets exceed liabilities ...
- Alert – Dividends: untangling the web - Publications - Be Informed ...
Dec 2, 2011 ... The Paper sets out a number of proposals, but we think that the option to replace the dividend test with a solvency requirement is clearly the ...
- Not Essentially Equivalent to a Dividend for Overland_Storage (OVRL)
Oct 27, 2008 ... You will satisfy the “not essentially equivalent to a dividend” test if the reduction in your proportionate interest in our common stock resulting ...