« previous next »

Author Question: The purpose of the restrictive debt covenant that imposes fixed assets restrictions is to ________. ... (Read 71 times)

evelyn o bentley

  • Hero Member
  • *****
  • Posts: 564
on: Jul 11, 2018
The purpose of the restrictive debt covenant that imposes fixed assets restrictions is to ________.
 
  A) protect the lender by controlling the risk and marketability of the borrower's security investment alternatives
  B) limit the amount of fixed-payment obligations
  C) ensure a cash shortage does not cause an inability to meet current obligations
  D) prevent the firm from liquidation and ensure its ability to repay the debt

Question 2

The net proceeds used in calculation of the cost of long-term debt are funds actually received from the sale after paying for flotation costs and taxes.
 
  Indicate whether the statement is true or false


deja

  • Sr. Member
  • ****
  • Posts: 332
Reply #1 on: Jul 11, 2018
Answer to Question 1

D

Answer to Question 2

TRUE


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

If you use artificial sweeteners, such as cyclamates, your eyes may be more sensitive to light. Other factors that will make your eyes more sensitive to light include use of antibiotics, oral contraceptives, hypertension medications, diuretics, and antidiabetic medications.

Did you know?

Russia has the highest death rate from cardiovascular disease followed by the Ukraine, Romania, Hungary, and Poland.

Did you know?

About 60% of newborn infants in the United States are jaundiced; that is, they look yellow. Kernicterus is a form of brain damage caused by excessive jaundice. When babies begin to be affected by excessive jaundice and begin to have brain damage, they become excessively lethargic.

Did you know?

A recent study has found that following a diet rich in berries may slow down the aging process of the brain. This diet apparently helps to keep dopamine levels much higher than are seen in normal individuals who do not eat berries as a regular part of their diet as they enter their later years.

Did you know?

Children of people with alcoholism are more inclined to drink alcohol or use hard drugs. In fact, they are 400 times more likely to use hard drugs than those who do not have a family history of alcohol addiction.

A fixed action pattern elicited by a sign stimulus. A fixed action pattern elicited by a sign stimulus.
(a) Homologous traits are similar due to shared ancestry. (b) Analogous traits (bats’, birds’, and f (a) Homologous traits are similar due to shared ancestry. (b) Analogous traits (bats’, birds’, and f
A passenger train crosses Stony Creek Bridge in the Rocky Mountains in 1878. Railroads were importan A passenger train crosses Stony Creek Bridge in the Rocky Mountains in 1878. Railroads were importan
Does everything in nature have a unique purpose (entelechy)? Does everything in nature have a unique purpose (entelechy)?
If 0.40 mol of NaN3 reacts completely in the reaction shown below, then ________ L of N2 will ... If 0.40 mol of NaN3 reacts completely in the reaction shown below, then ________ L of N2 will ...
The purpose of mitosis is to take diploid cells and make two identical clones. A shows a simplified The purpose of mitosis is to take diploid cells and make two identical clones. A shows a simplified
Video: Acid-base imbalances - compensation of metabolic acidosis and alkalosis

For a complete list of videos, visit our video library