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Covenants restricting additional borrowings primarily protect the: A. shareholders residual interests in the firm. B. debtholders from the added risk of dilution of their claims.

Covenants restricting additional borrowings primarily protect the:

A. shareholders residual interests in the firm.

B. debtholders from the added risk of dilution of their claims.

C. debtholders from changes in market interest rates.

D. managers by avoiding agency costs.

E. shareholders from agency costs.

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