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Which of the following is NOT likely to be a bond covenant? (Choose the correct response.) A. Dividend payouts can be made only from earnings
Which of the following is NOT likely to be a bond covenant? (Choose the correct response.) A. Dividend payouts can be made only from earnings generated after the bond issue. B. A maximum amount of assets can be sold, and/or a minimum amount of assets must be maintained. C. Mergers are allowed only if the combined firm has a maximum ratio of net tangible assets to debt. D. New debt must be subordinate to existing debt
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