Question
QUESTION 16 Contractual clauses on long-term debt agreement that place specific operating and financial constraints on the borrowers are called? Borrower risk constraints Loan covenants
QUESTION 16
Contractual clauses on long-term debt agreement that place specific operating and financial constraints on the borrowers are called?
Borrower risk constraints
Loan covenants
Payment dates
Loan size
3 points
QUESTION 17
______________ are forecast of what firms expect the income statement and balance sheets look like in a year or two ahead.
Sales volume
Pro-forma financial statements
Inventories
Salaries and Wages
3 points
QUESTION 18
The following types of bonds are unsecured, EXCEPT.
Equipment trust certificates
Debentures
Income bonds
Subordinated debentures.
3 points
QUESTION 19
The assumptions of the sustainable growth model is all of these, EXCEPT.
The only form of equity is common stock, and it will not issue new shares of common stocks next year
The Total assets turnover ratio (S/A) remains constant
Payout a growing fraction of its earnings as dividends.
3 points
QUESTION 20
: _________ is a third party to a bond indenture and can be an individual, a corporation, or, most often, a commercial bank trust department.
Bond issuer
Investor
Trustee
Rated Agency
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