(Answered) Question rjr nabsico also had 10 billion in bonds

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Question: RJR Nabsico also had $ 10 billion in bonds outstanding at the time of the dividend increase in problem. How would you expect Nabisco's bonds to react to the announcement? Why?

Problem: RJR Nabisco, in response to stockholder pressure in 1996, announced a significant increase in dividends paid to stockholders, financed by the sale of some of its assets. What would you expect the stock price to do? Why?

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