Company to pay dividends with borrowed money

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Reference no: EM131088202

Is it good or bad for a company to pay dividends with borrowed money? Lets say a company has had regular cash dividends to its stockholder for over 50 years. In it's current operating year, the company experienced a severe cash flow crisis. Would it be in the companies best interest to borrow money to pay its dividends?

Reference no: EM131088202

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