Examlex
The real interest rate equals the:
Financial Covenant
A clause in a loan agreement that requires the borrower to meet certain financial conditions, often used by lenders to protect their investments.
Net Worth
The total value of assets owned by an individual or corporation, minus any liabilities, indicating financial health.
Working Capital
Working capital is the difference between a company's current assets and current liabilities, indicating the liquidity and operational efficiency of the business.
Debt Covenants
Agreements or conditions included in debt contracts that the borrower must adhere to, designed to protect the lender by restricting the borrower’s activities and enhancing the likelihood of debt repayment.
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