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Debt covenant

AAMAAL5y ago
Can plz brief me on debt covenant what are this am confused
stephenwidbergstephenwidbergTutor5y ago#1
When a company borrows money from the bank, it makes certain promises - known as covenants. Normal covenants would be: 1. Gearing will not be more than x%. 2. Current ratio will not be less than x times. Etc.
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