An example of an affirmative covenant is the requirement: A. That dividends will not exceed 60% of

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An example of an affirmative covenant is the requirement:

A. That dividends will not exceed 60% of earnings.

B. To insure and perform periodic maintenance on financed assets.

C. That the debt-to-equity ratio will not exceed 0.4 and times interest earned will not fall below 8.0.

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Fixed Income Analysis

ISBN: 9781119850540

5th Edition

Authors: Barbara S. Petitt

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Question Posted: Nov 05, 2023 12:17 AM

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An example of an affirmative covenant is the requirement: A. That dividends will not exceed 60% of

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B is correct Affirmative covenants indicate what the issuer must d...View the full answer

Fixed Income Analysis

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