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The investment bankers tell a company that bond investors want the following covenants due to the current economic situation. 1. The company cannot merge with

The investment bankers tell a company that bond investors want the following covenants due to the current economic situation.

1. The company cannot merge with another company.

2. The company must maintain working capital above a certain limit.

As the CFO of the company would you agree to these terms? Why or why not?

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