Borrower Ltd has a debt covenant that requires it to maintain interest coverage of at least $3$ times. According to agency theory, if Borrower Ltd$$s actual interest coverage is close to $3$ times, management would prefer:

Group of answer choices

Upward revaluation of property, plant and equipment

Preference shares to be classified as equity instead of as liabilities

Increasing the provision for warranty expenses

Reclassifying interest paid as a financing activity in the statement of cash flows