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GaryK [48]
3 years ago
11

Protective covenants: Group of answer choices a.only apply to bonds that have a deferred call provision. b.are primarily designe

d to protect bondholders. c.apply to short-term debt issues but not to long-term debt issues. d.only apply to privately issued bonds. are a feature found only in government-issued bond indentures.
Business
2 answers:
patriot [66]3 years ago
6 0

Answer: The correct answer is b) are primarily designed to protect bondholders.

Explanation:

A Protective Covenant is part of an indenture that limits certain actions a company may take during the term of the loan to protect the lender's interests.

They are restrictions placed on the firm issuing bonds in a bid to protect bondholders. For example; they can be limits on dividend or limits on debt a firm can cause.

tiny-mole [99]3 years ago
4 0

Answer:

B. are primarily designed to protect bondholders

Explanation:

Protective covenants are designed primarily to protect bondholders from future actions of bond issuer. They are also part of a loan agreement that limits certain actions a company may take during the course of the loan to protect the person who lend the money interests. They provide extra protection for the investors. Creditors use it to protect their interests by restricting certain activities of the issuer that could endanger the creditor's interest.

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statuscvo [17]

Answer:

The Threat of New Entrants exerts a significant influence on the ability of current companies to generate a profit Gross Profit Gross profit is the direct profit left over after deducting the cost of goods sold, or cost of sales, from sales revenue. It's used to calculate the gross profit margin

Explanation:

3 0
3 years ago
On September 1, Year 1 Western Company loaned $36,000 cash to Eastern Company. The one-year note carried a 5% rate of interest.
alukav5142 [94]

Answer:

Option (C) is correct.

Explanation:

Given that,

Cash amount loaned = $36,000

Rate of interest on note = 5%

Time period: From September 1, Year 1 to December 31, Year 1 = 4 months

Amount of Interest revenue:

= Cash amount loaned × Interest rate × Time period

= $36,000 × 0.05 × (4/12)

= $36,000 × 0.05 × (1/3)

= $599.9 or $600

There is no cash flow from operating activity in respect of loan given to another company and interest revenue accrued on loan amount.

8 0
3 years ago
If the secular trend of labor productivity rises from 2 percent per year to 4 percent, the number of years that it will take for
QveST [7]

Answer:

C. 17.5 years

Explanation:

6 0
3 years ago
What are some advantages of students being exposed to computer software? (as it relates to Accounting)
ivann1987 [24]

Answer:

There are many advantages in students being exposed to accounting softwares.

-There productivity increases as they can engage in more work in less time

-The accuracy of the accounting process increases as well, mainly lyrics because there is no room for human errors

-the process becomes easier and less time consuming, this makes accounting less complicated and more attractive as a subject for the students

Explanation:

5 0
3 years ago
Read 2 more answers
Halestorm Corporation’s common stock has a beta of 1.20. Assume the risk-free rate is 4.5 percent and the expected return on the
Lemur [1.5K]

Answer:

Ke = Rf  + β(Rm – Rf)

Ke = 4.5 + 1.20(12-4.5)

Ke = 4.5 + 9

Ke = 13.5%

Explanation:

Cost of equity is equal to risk-free rate plus market risk premium. Market risk premium is beta multiplied by risk premium. Risk premium is market return minus risk-free rate.

8 0
3 years ago
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