Covenants restricting additional borrowings primarily protect the: A. shareholders’ residual interests in the firm. B. d

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answerhappygod
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Covenants restricting additional borrowings primarily protect the: A. shareholders’ residual interests in the firm. B. d

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Covenants restricting additional borrowings primarilyprotect the:
A. shareholders’ residual interests in thefirm.
B. debtholders from the added risk of dilution of theirclaims.
C. debtholders from changes in market interestrates.
D. managers by avoiding agency costs.
E. shareholders from agency costs.
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