Multiple Choice
If the maximum debt/equity ratio as specified by a debt covenant is close to being violated, which one of the following actions would increase the likelihood of violating the debt covenant?
A) Issuing capital stock
B) Skip current cash dividends
C) Acquire money by issuing a non-interest-bearing note payable
D) Acquire money by collecting accounts receivable
Correct Answer:
Verified
Correct Answer:
Verified
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