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QUESTION

Which of the actions below could reduce company leverage?

Which of the actions below could reduce company leverage? (choose all that apply)

a) Negotiate lower interest rates on its short-term debt

b) Raise additional equity capital

c) Sell equity in the business at book value

d) Sell plant, property & equipment and use the cash to pay off creditors

e) Buy equity in another company as a long-term investment

f) Pay off long-term debt

g) Use short-term debt to pay off long-term loans

h) Increase net profits (and thereby retained earnings)

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