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Bond covenants could be affected as a result of higher debt-equity ratios. Management compensation could...

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Accounting

Bond covenants could be affected as a result of higher debt-equity ratios. Management compensation could be affected as a result of booking OPEB expenses. The question is also raised relative to curtailing or at least cutting back on OPEB benefits as a result of booking expenses and liabilities. Finally, the issue of competitive disadvantage of American firms in international capital markets has been raised as a result of lowering income and raising liabilities.

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