A firm wants to strengthen its financial position.Which action would increase its current ratio?
A) Use cash to repurchase some of the company's own stock.
B) Borrow using short-term debt and use the proceeds to repay debt that has a maturity of more than 1 year.
C) Issue new stock and then use some of the proceeds to purchase additional inventory and hold the remainder as cash.
D) Use cash to increase inventory holdings.
Correct Answer:
Verified
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