Question: 7. Differentiate between the economic and accounting effects (often different) of debt retirement or refinancing. S. Explain the role of debt covenants in protecting creditors

7. Differentiate between the economic and accounting effects (often different) of debt retirement or refinancing.

S. Explain the role of debt covenants in protecting creditors by limiting the firm's freedom to invest, pay d1vidcnds, or make other opei-ating and strategic decisions.

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