BUSN379 379-What are protective covenants
June 7th, 2024
1. What are protective covenants? Can you list some negative and positive ones?2. How to value a company can be a little challenging if a company does not issue stock. When a company does not issue stocks, we should consider the book value of the company, and price/earnings ratio.You are considering investing in XYZ Company. The company is offering preferred stocks with a dividend payment of $1.80 per share. If investors require a rate of return of 11%, What is the price of the stock?Now, consider a dividend payment of $2.5 and $1.5 per share.