Suppose that the firm is prevented by bond covenants from, Financial Accounting

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Suppose that the firm is prevented by bond covenants from

Suppose that the firm is prevented by bond covenants from issuing more debt. It is committed to increasing assets by 10 percent to support the forecast increase in sales, and it strongly believes that a dividend payment of $180 is in the best interests of the firm. What must be the balancing item? What is the implication for the firm’s financing activities in the next year?

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Financial Accounting: Suppose that the firm is prevented by bond covenants from

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