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Your Banker Is Concerned About Your Company's Liquidity

Question 46

Multiple Choice

Your banker is concerned about your company's liquidity.Which of the following actions would increase the firm's current ratio and ease the bank's concern?


A) Sell some inventory for cash.
B) File for bankruptcy.
C) Call your convertible bonds and thereby force the bond holders to become shareholders.
D) Sell some of the firm's long-term bonds and purchase marketable securities.
E) Sell long-term bonds to purchase new machinery.

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