What restrictions are imposed on a companys freedom to issue further debt? Be as precise as possible.

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What restrictions are imposed on a company’s freedom to issue further debt? Be as precise as possible. Explain carefully the reasons for such restrictions.

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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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What restrictions are imposed on a companys freedom to issue further debt? Be as precise as possible.

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Most bonds contain covenants that restrict the firms abili...View the full answer

Principles of Corporate Finance

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