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Discuss why the firm has an incentive to align its interests with its debtholders and how it would do this. (6 marks) The debt to

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Discuss why the firm has an incentive to align its interests with its debtholders and how it would do this. (6 marks) The debt to total tangible assets (i.e., the leverage ratio) is a common accounting-based ratio used to define and monitor restrictive covenants in debt contracts. Explain why the denominator of this ratio excludes intangible assets from the calculation? (4 marks)

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