Although your company has been historically profitable, its bond rating has just been
downgraded due to the rating agency’s opinion that your company is too highly leveraged with a
debt-to-equity ratio of 6:1. What can you do to most expeditiously improve your situation?
a. Raise additional equity and use the proceeds to retire debt.
b. Lower your expenses.
c. Increase your revenues.
d. Ask your suppliers for longer terms.
e. None of the above.
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