The purpose of the restrictive debt covenant that requires that subsequent borrowing be subordinated to the...
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The purpose of the restrictive debt covenant that requires that subsequent borrowing be subordinated to the original loan is to ________. |
Homework Answers
The purpose of the restrictive debt covenant that requires that subsequent borrowing be subordinated to the original loan is to protect the original lender in the priority of claims during liquidation.
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The purpose of the restrictive debt covenant that requires that
subsequent borrowing be subordinated to the...
In the context of Enron, who or what is a “Chewco”? ( A debt covenant A...
In the context of Enron, who or what is a “Chewco”? ( A debt covenant A special purpose entity (SPE) An operating lease A janitorial services company
P8-8 Avoiding debt covenant violations ( LO 8-4) Page 8-38 Food Galore operates a chain of...
P8-8 Avoiding debt covenant violations ( LO 8-4) Page 8-38 Food Galore operates a chain of retail supermarkets. The supermarket business is highly competitive, and it is characterized by low profit margins. Food Galore recently entered into a credit agreement with a group of banks. Excerpts from the loan agreement follow. Fixed Charges Coverage The ratio of Income Available for Fixed Charges to Fixed Charges shall be at least 1.50 at every quarter end. Limitation on Additional Debt The Borrower...
Company Y borrowed $3 million to finance an investment. The lender insisted on a debt covenant...
Company Y borrowed $3 million to finance an investment. The lender insisted on a debt covenant in the loan agreement, specifying that the ratio of total liabilities to total tangible assets not exceed 60%. Company Y’s ratio of total liabilities to total tangible assets was 60.2% for the current year before reflecting the cost of a new billboard construction. The manager of Company Y has an option to expense or capitalise the cost of billboard construction for the current year....
need help with the last part Preparing Entries for a Secured Borrowing and Subsequent Collections and Payments A not...
need help with the last part
Preparing Entries for a Secured Borrowing and Subsequent Collections and Payments A note payable was executed by Sterling Inc. to Miami Finance Company. Sterling Inc. used $432,000 of its accounts receivable as collateral for the loan. The contract provided that Miami would advance 85% of the gross amount of the receivables. Sterling Inc. continues to collect payments for the receivables and the cash from customers is then remitted to the finance company. The cash...
1. Which of the following is not considered personal property in legal terms? A) Intangible property...
1. Which of the following is not considered personal property in legal terms? A) Intangible property or chose in action B) A claim against someone that has value C) Intellectual property (ideas and creative work) D) Chattels E) A good affixed to real property Answer: : An option agreement is A) a contract transferring the fee simple to a new owner. B) a contract by which the offeror of property promises to hold his offer open for a period of...
Classifying Debt On December 31, 2020, Millers Grocery Inc. had a 10 year, 7 note payable...
Classifying Debt On December 31, 2020, Millers Grocery Inc. had a 10 year, 7 note payable balance of $100,000. The note payable was originally issued on June 30, 2011. The company will issue its financial statements on March 15, 2021 How will the note payable in each of the following separate scenarios be classifed on the balance sheet of Millers Grocery on December 31, 20207 a. The company intends to pay off the note payable when it comes due b....
You have credit card debt of $ 30 comma 000 that has an APR (monthly compounding)...
You have credit card debt of $ 30 comma 000 that has an APR (monthly compounding) of 17 %. Each month you pay the minimum monthly payment only. You are required to pay only the outstanding interest. You have received an offer in the mail for an otherwise identical credit card with an APR of 11 %. After considering all your alternatives, you decide to switch cards, roll over the outstanding balance on the old card into the new card,...
You have credit card debt of $37,500 that has an APR (monthly compounding) of 16%. Each month you pay the minimum month...
You have credit card debt of $37,500 that has an APR (monthly compounding) of 16%. Each month you pay the minimum monthly payment only. You are required to pay only the outstanding interest. You have received an offer in the mail for an otherwise identical credit card with an APR of 11%. After considering all your alternatives, you decide to switch cards, roll over the outstanding balance on the old card into the new card, and borrow additional money as...
Major Debates Over Macroeconomic Policy Instructions Assignment Files Grading Purpose of Assignment This week requires the...
Major Debates Over Macroeconomic Policy Instructions Assignment Files Grading Purpose of Assignment This week requires the student to address six unresolved issues in macroeconomics, each of which is central to current political debates. Students are required to use information and tools that they have accumulated in their study of the text and evaluate both sides of those issues, determine which side they can support for each issue, and defend their positions. Assignment Steps Select two subjects from the following list...
Question 13. Which of the following statements about debt capital is correct? (a) [1 mark] An...
Question 13. Which of the following statements about debt capital is correct? (a) [1 mark] An unsecured creditor only has rights in contract, whereas a secured creditor has rights under the Corporations Act 2001 (Cth) An unsecured creditor only has rights under the Corporations Act, whereas a secured creditor has rights in contract A secured loan is one in respect of which the company has given special rights over its property to a creditor that can be used by a...
In the context of Enron, who or what is a “Chewco”? ( A debt covenant A special purpose entity (SPE) An operating lease A janitorial services company
P8-8 Avoiding debt covenant violations ( LO 8-4) Page 8-38 Food Galore operates a chain of retail supermarkets. The supermarket business is highly competitive, and it is characterized by low profit margins. Food Galore recently entered into a credit agreement with a group of banks. Excerpts from the loan agreement follow. Fixed Charges Coverage The ratio of Income Available for Fixed Charges to Fixed Charges shall be at least 1.50 at every quarter end. Limitation on Additional Debt The Borrower...
need help with the last part
Preparing Entries for a Secured Borrowing and Subsequent Collections and Payments A note payable was executed by Sterling Inc. to Miami Finance Company. Sterling Inc. used $432,000 of its accounts receivable as collateral for the loan. The contract provided that Miami would advance 85% of the gross amount of the receivables. Sterling Inc. continues to collect payments for the receivables and the cash from customers is then remitted to the finance company. The cash...
1. Which of the following is not considered personal property in legal terms? A) Intangible property or chose in action B) A claim against someone that has value C) Intellectual property (ideas and creative work) D) Chattels E) A good affixed to real property Answer: : An option agreement is A) a contract transferring the fee simple to a new owner. B) a contract by which the offeror of property promises to hold his offer open for a period of...
Classifying Debt On December 31, 2020, Millers Grocery Inc. had a 10 year, 7 note payable balance of $100,000. The note payable was originally issued on June 30, 2011. The company will issue its financial statements on March 15, 2021 How will the note payable in each of the following separate scenarios be classifed on the balance sheet of Millers Grocery on December 31, 20207 a. The company intends to pay off the note payable when it comes due b....
You have credit card debt of $37,500 that has an APR (monthly compounding) of 16%. Each month you pay the minimum monthly payment only. You are required to pay only the outstanding interest. You have received an offer in the mail for an otherwise identical credit card with an APR of 11%. After considering all your alternatives, you decide to switch cards, roll over the outstanding balance on the old card into the new card, and borrow additional money as...
Major Debates Over Macroeconomic Policy Instructions Assignment Files Grading Purpose of Assignment This week requires the student to address six unresolved issues in macroeconomics, each of which is central to current political debates. Students are required to use information and tools that they have accumulated in their study of the text and evaluate both sides of those issues, determine which side they can support for each issue, and defend their positions. Assignment Steps Select two subjects from the following list...
Question 13. Which of the following statements about debt capital is correct? (a) [1 mark] An unsecured creditor only has rights in contract, whereas a secured creditor has rights under the Corporations Act 2001 (Cth) An unsecured creditor only has rights under the Corporations Act, whereas a secured creditor has rights in contract A secured loan is one in respect of which the company has given special rights over its property to a creditor that can be used by a...
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