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Author Question: When the net proceeds from sale of a bond equal its par value, the before-tax cost would just equal ... (Read 60 times)

PhilipSeeMore

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on: Jul 11, 2018
When the net proceeds from sale of a bond equal its par value, the before-tax cost would just equal the coupon interest rate.
 
  Indicate whether the statement is true or false

Question 2

The purpose of the debt covenant that prohibits borrowers from entering into certain types of leases is to ________.
 
  A) protect the lender by controlling the risk and marketability of the borrower's security investments alternatives
  B) limit the amount of fixed-payment obligations
  C) ensure a cash shortage does not cause an inability to meet current obligations
  D) limit the annual cash dividends paid by the firm


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bob

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Reply #1 on: Jul 11, 2018
Answer to Question 1

TRUE

Answer to Question 2

B


PhilipSeeMore

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Reply #2 on: Jul 11, 2018
TY


bob

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Reply #3 on: Jul 11, 2018
Happy to Help


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