An agreement between managers and lenders to maintain a minimum ratio of working capital can assist which of the following problems in relation to increased lender's risk?
A) claim dilution.
B) asset substitution.
C) underinvestment.
D) excessive dividend payments.

Question

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The Answer of An agreement between managers and lenders to maintain a minimum ratio of working capital can assist which of the following problems in relation to increased lender's risk?
A) claim dilution.
B) asset substitution.
C) underinvestment.
D) excessive dividend payments.

An Agreement Between Managers and Lenders to Maintain a Minimum