Question

Lenders are primarily concerned about poor firm performance, since this increases the likelihood that they will not receive their interest and principal. How do lenders benefit if the firm performs well? If lenders benefit when the firm does well, why are they primarily concerned about downside risk? Which accounting policies do lenders want to protect against downside risk? Explain how these policies decrease downside risk.



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  • CreatedSeptember 09, 2014
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