medium · Corporate Credit Analysis
A sponsor-backed company has a restricted payments 'builder basket' with an initial $50M capacity. In Year 1, the company generates100M in Consolidated Net Income (CNI) and the basket builds at 50% of CNI.
If the company pays a $40M dividend at the end of Year 1, what is the remaining basket capacity?
- $110M
- $10M
- $60M
- $100M
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