Why should the investment officer be concerned about the loan covenants on the company's loans?
A) they may force the company to invest in high-risk,high-return securities in order to have enough interest revenue to pay the loan's interest expense
B) they may include fine print forcing the company to engage in illegal activities
C) they may prohibit certain types and/or amounts of investments
D) all of the above
Correct Answer:
Verified
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A)Dividend capture
B)Dividend
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