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Question 13 Which of the following statements about debt covenants is CORRECT? O a) Covenants can mitigate the cost of moral hazard. O b) Covenants

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Question 13 Which of the following statements about debt covenants is CORRECT? O a) Covenants can mitigate the cost of moral hazard. O b) Covenants are derivative securities designed to reduce the risk of lenders. O c) One of the consequences of debt covenants is elevated default risk. O d) Debt covenants can only be affirmative

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