1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
myrzilka [38]
3 years ago
15

If a firm issues debt with no protective covenants in the indenture then the firm's debt will probably be issued at _____ simila

r debt with protective covenants.
a. a higher interest rate than
b. a lower interest rate than
c. an interest rate equal to that of
d. a slightly higher interest rate than
Business
1 answer:
Vinvika [58]3 years ago
8 0

Answer: b. a lower interest rate than

Explanation:

A protective convenant is also referred to as a restrictive covenant and it is referred to as an agreement whereby a particular company is restricted from doing certain things while a contract is still ongoing.

In this case, when a firm issues debt with no protective covenants in the indenture then the firm's debt will probably be issued at lower interest than similar debt with protective covenants. The reason for this is that the lender is protected when there is a convenant which ultimately lower the cost of debt.

You might be interested in
All of these are open-system characteristics except
NARA [144]
I think the correct answer from the choices listed above is option D. All of these are open-system characteristics except circular causation. It is a<span>n action that is controlled or affected by its own status-change or result . Hope this answers the question. Have a nice day.</span>
8 0
3 years ago
Write the planning process for a profession.​
Goryan [66]

Answer:

1) Explore career options

2) conduct field research

3) determine your job target

4) Build your credentialsand resume

5) Prepare for your job search

4 0
3 years ago
1. Bart Simpson, Inc., is considering the possibility of building an additional factory that would produce a new addition to its
garri49 [273]

Answer:

Three cases are considered: First case is to construct a small factory, second is to construct a large factory and third is to do nothing.

Construct a Small Facility is the most suitable option from the business perspective which makes case 1 recommended.

Explanation:

Case 1 - Construct a small facility

Return = [P(High Demand) x Revenue in case of High Demand] + [P(Low Demand) x Revenue in case of Low Demand] - Cost of Setup

= [ 0.4 x 12 ] + [ 0.6 x 10 ] - 6 = $ 4.8 million

Case 2 - Construct a Large Facility

Return = [P(High Demand) x Revenue in case of High Demand] + [P(Low Demand) x Revenue in case of Low Demand] - Cost of Setup

= [0.4 x 14] + [0.6 x 10] - 9 = $ 2.6 million

Case 3 - Do Nothing

Return = 0  

6 0
3 years ago
When would you write a report
ElenaW [278]

Answer:

You write a report when u r being asked.

Explanation:

hope that will help you.

3 0
4 years ago
Owen Cartwright has joined a real estate syndicate that bought an office building in downtown Orlando, Florida. What type of inv
Rus_ich [418]
The correct option is B.
Investment in real estate can be categorized as direct and indirect investment. An indirect investment in real estate is one in which the investor buy shares in a privately or publicly owned company. Indirect real estate property investment give the investors the opportunity to invest in real estate through the  mean of buying shares from appropriate institutions.
8 0
4 years ago
Read 2 more answers
Other questions:
  • A mining company is part of what industry
    14·1 answer
  • Whirlpond, a manufacturer of home appliances, has historically produced the components for their products. however, whirlpond no
    5·1 answer
  • When an agency creates or modifies a procedural rule, it must go through the notice and comment requirements of the apa?
    7·1 answer
  • "some compact cars are hybrids. therefore, it is false that no compact cars are hybrids."
    8·1 answer
  • The marketing department of an organization is responsible for facilitating _______. A. coordination between the various departm
    12·1 answer
  • What you doing im about to summit it ok now i know it it is d
    15·1 answer
  • Richard borrowed $4600 to pay for his tuition at Queens College, the interest rate from the bank was 6.5%. How much will each mo
    5·1 answer
  • What is brand personality with example in food industry​
    14·1 answer
  • If you contributed the full 6% of your $50,000 salary (the amount your company will match), what would be your monthly contribut
    9·1 answer
  • XYZ Company had 200,000 shares of common stock outstanding on December 31, 2020. On July 1, 2021, XYZ issued an additional 44,00
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!