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XYZ Corporation current ratio is currently 1.75 to 1. The firm's current ratio cannot fall below 1.5 to 1 without violating agreements with its bondholders.
XYZ Corporation current ratio is currently 1.75 to 1. The firm's current ratio cannot fall below 1.5 to 1 without violating agreements with its bondholders. If current liabilities are presently $200 million, what is the maximum new short-term debt that can be issued to finance an equivalent amount of inventory expansion?
$41.67 million. | ||
$62.50 million. | ||
$125.00 million. | ||
$100.00 million. |
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