1. Can price protection properly function if potential investors are unaware of the existing debt covenants in a companys lending agreements?
2. While debt covenants reduce the risk of the debtholders that negotiated the covenants, would they increase the risk borne by other creditors?
3. While the article suggests that companies do not disclose, would the theory provided within this chapter suggest that companies should publicly disclose information about existing debt covenants? Clearly explain your answer.