Stephanie Wolcott, the chief financial officer of Hangers Inc., is considering the options available to her for financing the company’s new plant.

Short-term interest rates right now are 6%, and longterm rates are 8%. The company’s current ratio is 2.2:1. If she finances the new plant with short-term 509 debt, the current ratio will fall to 1.5:1. Briefly discuss the issues that Stephanie should consider. 18. a