Why do debt contracts typically impose covenants based on accounting information such as working capital, interest coverage,

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Why do debt contracts typically impose covenants based on accounting information such as working capital, interest coverage, and debt-to-equity?

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Financial Accounting Theory

ISBN: 9780132072861

5th Edition

Authors: William R Scott

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Question Posted: Jun 11, 2024 01:00 AM

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Why do debt contracts typically impose covenants based on accounting information such as working capital, interest coverage,

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Financial Accounting Theory

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