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Would they be in violation of covenant

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Reference no: EM132719451

1. Goodco Corporation has a debt incurrence covenant of 3x Debt/EBITDA. On 12/31/2019 the company's debt remained unchanged at $300 million, but their EBITDA declined to $90 million.

a. Would they be in violation of this covenant?

b. If not, would they be able to borrow any more money?

Reference no: EM132719451

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