Select all that applyWhich of the following are examples of a negative covenant?Multiple select question.The firm must maintain a current ratio at 1.5.The firm must hold a quarterly meeting with the auditors.The firm may not pay excessive dividends.The firm is restricted from merging with another firm.

Select all that applyWhat are the two types of protective covenants?Multiple select question.Shareholder covenantsPositive covenantsNegative covenantsBondholder covenants

What is a negative covenant?Multiple choice question.A covenant that limits or prohibits the actions that the government may take.A covenant that limits or prohibits actions that the bondholders may take.A covenant that limits or prohibits actions that the company may take.A covenant that limits or prohibits actions that the SEC may take.

Select all that applyWhat are some covenant types that can prevent the transfer of corporate assets to shareholders?Multiple select question.Restrictions on the sale of assetsWorking capital restrictionsDividend restrictionsLeasing restrictions

Select all that applyWhat does a protective covenant involve?Multiple select question.The specification of conditions that a company must abide by.Protection to employees if a firm goes bankrupt.Protection to shareholders if a firm goes bankrupt.The stipulation of actions that a company agrees to take.

Select all that applyWhich of the following are examples of signaling by a firm?Multiple select question.An increase in the target debt ratioAn increase in regulationsAn increase in corporate tax ratesAn increase in dividends