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Deliberate what a company subject to a debt-to-equity ratio covenant might to do to reduce the...

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Accounting

Deliberate what a company subject to a debt-to-equity ratiocovenant might to do to reduce the ratio so that it does not exceedthe bank’s stipulated ratio. (Hint: Abandon conformance to GAAPwhen considering your post).

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3.6 Ratings (451 Votes)
1Any action that would reduce the debt or increase the stockShares will ultimately reduces the debtequity ratio of the company 2 There are many legitimate and illegimate ways to reduce this ratiothe illegitimate ways are not just antiGAAPthis involves the fraud 3Legitimately a company    See Answer
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Deliberate what a company subject to a debt-to-equity ratiocovenant might to do to reduce the ratio so that it does not exceedthe bank’s stipulated ratio. (Hint: Abandon conformance to GAAPwhen considering your post).

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