Restrictive bond or debt covenant, Finance Basics

Assignment Help:

Restrictive Bond or Debt Covenant

In this case the debenture holders will impose strict conditions and terms on the borrower. These restrictions may comprise:

a) No disposal of assets with no the authorization of the lender.

b) No payment of bonus from retained earnings

c) Maintenance of a provided level of liquidity indicated through the Amount of current assets in relation to current liabilities.

d) Restrictions on organizations and mergers

e) No using of additional debt, before the current debt is completely serviced or paid.

f) The bondholders may recommend the category of project to be undertaking in relation to the riskiness of the project.


Related Discussions:- Restrictive bond or debt covenant

Explain the both dividend yield and earnings yield, Explain the both Divide...

Explain the both Dividend Yield and Earnings Yield Dividend Yield: Dividend yield is the ratio of per share expected dividends, to current market price of share. Earnin

Calculate the nominal, calc the nimonal(annual percentagerete)interest rate...

calc the nimonal(annual percentagerete)interest rate if the iffective interest rate earned on an investment is 16.08%/Unum but interest is calculated at the end of each month

Wacc based on market value weights, Sapp Trucking's balance sheet shows a t...

Sapp Trucking's balance sheet shows a total of noncallable $45 million long-term debt with a coupon rate of 7.00% and a yield to maturity of 6.00%. This debt currently has a marke

Type of partners, Type of Partners 1) Active Partner 2) Sleeping Par...

Type of Partners 1) Active Partner 2) Sleeping Partner 3) Quasi or Nominal Partner 4) Minor Partner 5) Major Partner 6) In-coming Partner 7) Out-going Partner

Calculate the firms wacc, The Genesis operations management team, nearing c...

The Genesis operations management team, nearing completion of its agreement with Sensible Essentials, was asked by senior management to present a capital plan for the operating exp

Australi a, i ordered case study 1 susam and malcom. when i open the docume...

i ordered case study 1 susam and malcom. when i open the document is completely different, not the same case study an is only relivent in the usa not australia... do you have the c

Calculate the ex-right stock price, DIY Inc. plans to raise $200,000 with a...

DIY Inc. plans to raise $200,000 with a right offering. The current stock price is $100 and there are 80,000 shares outstanding.  a. If DIY sets the subscription price to be $80

What are the types of orders, What are the Types of orders (i) Spot ...

What are the Types of orders (i) Spot Delivery: Spot delivery means delivery and payment on the same day as date of the contract or on the next day. (ii) Hand Delivery:

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd