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26. Management of a company does not want to violate a working capital restriction contained in its bond indenture. If the firm's current ratio falls
26. Management of a company does not want to violate a working capital restriction contained in its bond indenture. If the firm's current ratio falls below 2.0 to 1, technically it will have defaulted. The firm's current ratio is now 2.2 to 1. If current liabilities are $200 million, the maximum new commercial paper that can be issued to finance inventory expansion is a. $20 million. b. $40 million. c. $240 million. d. $180 million
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