You would like to make a major expenditure. Your debt ratio is currently at 15%. All else equal, which of the following would probably be the best way to acquire the needed funds?
A) buy back common stock shares
B) increase long- term debt
C) reduce cash holdings to zero
D) increase marketable securities

Question

Quizplus · Accepted Answer

Increasing long-term debt is a viable option for acquiring needed funds, especially when the current debt ratio is relatively low at 15%. This suggests that the entity has a lower level of leverage and potentially the capacity to take on more debt without excessively burdening its financial structure.

You Would Like to Make a Major Expenditure