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Unformatted text preview: • Any expected growth in dividends that the shareholders expect from the company's shares. • Any minimum EPS or P/E ratios that the company may have to maintain according to market expectations, in order to maintain its share marketability. • The potential loss in share price and the accompanying loss of goodwill, incase the said policy goes wrong. • The availability of debt from the market. • The duration for which the long-term loan is sought. Ideally, it should match the length of time of the project. • Whether the loan to be obtained contains a clause for the bank to reconsider interest rates, in the future, should it wish to do so. • The amount of security or any such restrictive covenants (minimum cash, specific EPS maintenance) that come with the loan....
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- Spring '11
- Generally Accepted Accounting Principles, Understanding Financial Statements, specific EPS maintenance