Explain carefully why bond indentures place limitations on the following actions: (a) Sale of the companys assets.

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Explain carefully why bond indentures place limitations on the following actions:

(a) Sale of the company’s assets.

(b) Payment of dividends to shareholders.

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Principles of Corporate Finance

ISBN: 978-0072869460

7th edition

Authors: Richard A. Brealey, Stewart C. Myers

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Question Posted: Jun 09, 2011 06:01 AM

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Explain carefully why bond indentures place limitations on the following actions: (a) Sale of the companys assets.

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a There are two primary reasons for limitations on the sale of company assets First coupon and sinki...View the full answer

Principles of Corporate Finance

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