Your firm's banker is getting nervous about your liquidity. Which of the following actions would increase the firm's current ratio (which is presently 0.6) and ease the bank's concern?
A) Sell 30-year bonds to purchase fixed assets.
B) Allow preferred shareholders to convert their holdings into common stock.
C) A cash sale of inventory at cost.
D) Sell long-term bonds owned by the firm and purchase marketable securities.
E) File for bankruptcy.
Correct Answer:
Verified
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