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NEW QUESTION: 1
A company has a covenant on its 5% long term corporate bond.
* Covenant - The earnings must not fall below $7 million
The bond has a nominal value of $60 million.
It is currently trading at 80% of its nominal value.
The projected earnings before interest and taxation for next year are $11.5 million.
The company retains 80% of its earnings. It pays tax at 20%.
Advise the Board of Directors which of the following covenant conditions will apply next year?
A. The earnings will be = $11.50 million (The covenant will not be breached).
B. The earnings will be = $6.80 million (The covenant will be breached).
C. The earnings will be = $7.28 million (The covenant will not be breached).
D. The earnings will be = $5.44 million (The covenant will be breached).
Answer: B

NEW QUESTION: 2

A. Option D
B. Option A
C. Option C
D. Option B
Answer: C

NEW QUESTION: 3
Which of these would fall outside the scope of a typical service change management process
A. A firmware upgrade to a server that is only used for IT Service Continuity purposes
B. A change to a contract with a supplier
C. A change to a business process that depends on IT Services
D. An urgent need to replace a CPU to restore a service during an incident
Answer: C