There are 3 questions with this request. Each question needs to be answered sperately with a minimum of 1 page and 250 words. No plagerism but no references are required. You are writing for someone who knows nothing of the subject. Use an example to illustrate the point discussed. Tell them what they need to know to understand the subject. It needs to answer the questions What is it?, How does it work? And Why does it matter?

Question 1:

What is an Investment Banker and why would a company use one?

Specifics that need to be included:

He has the contacts and is the one that finds the investors.

He knows the legalities with the SEC and how to maneuver through that.

He is in the market making business as no investors are going to touch our stock or bonds without it

Question 2:

What are the Restrictive Covenants? How do they work? Whys does it matter to Management?

Specifics that need to be included:

Its the prize for keeping investors' money in the company.

1.Collateral using the 80% rule

2.Financial ratios, i.e. Time interest earned including earning 3 dollars for every dollar you pay and 1 dollar for every dollar that investor puts up

3.Limited voting rights, i.e. mergers, takeovers and reorganizations

4.Insurance (which is optional) If the company goes in default it doesn't cost me and the company pays the premiums like a mortgage

Question 3 (Requires a example using the math):

What is Total Return? How is it used to calculate the price of a stock? Why would it matter to management?

Specifics that need to be included:

The prize for keeping investors' money in the company and is the rent for using my money
(Example: I want capital gains but I will accept dividends)

Its managements report card