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Which One of the Following Might Be Included in a Bond's

Question 41

Multiple Choice

Which one of the following might be included in a bond's list of negative covenants?


A) Maintain a current ratio of 1.2 or more
B) Maintain a minimum cash balance of $1.2 million
C) Limit cash dividends to $1 per share or less
D) Maintain a times interest earned ratio of 2 or more
E) Provide audited financial statements in a timely manner

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