Restrictive covenants are designed to protect both the bondholder and the issuer even though they may constrain the actions of the firm's managers. Such covenants are contained in the bond's indenture.?
Answer the following statement true (T) or false (F)
True
Restrictive covenants cover such points as the conditions under which the issuer can pay off the bonds prior to maturity, the levels at which various financial measures must be maintained if the company is to sell additional bonds, and restrictions on the payment of dividends to stockholders when earnings do not meet certain specifications. See 6-1: Characteristics and Types of Debt
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Describe the process that results in "underwhelmed" customers and shareholders
What will be an ideal response?
Loyal customers are often more ________ than customers who need price inducements to switch or become a new customer
A) price-sensitive B) price-insensitive C) critical about quality D) expensive
For an auditor to test the existence assertion of assets, testing will be performed beginning with the recorded asset and ending with the source documents
a. True b. False Indicate whether the statement is true or false
Identify the true statement concerning communications between clients and accountants.
A. Even if a state has a statute that grants protection to accountants' working papers, federal courts do not always recognize such state statutes. B. In all states, communications between clients and accountants are treated the same way communications between clients and attorneys are treated. C. Communications between clients and accountants are treated by courts as privileged in the vast majority of states. D. The accountant can never be forced to testify about the client's records and about conversations that the accountant had with the client.