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Business, 23.07.2019 13:30 genyjoannerubiera

The purpose of the debt covenant that prohibits borrowers from entering into certain types of leases is to protect the lender by controlling the risk and marketability of the borrower's security investments alternatives limit the amount of fixed-payment obligations ensure a cash shortage does not cause an inability to meet current obligations limit the annual cash dividends paid by the firm

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The purpose of the debt covenant that prohibits borrowers from entering into certain types of leases...
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