Chester currently has $20,132 (000) in cash and management has decided to issue stocks and bonds worth an additional $8,000 (000). Assuming that cash from operations will be the same for each of the following activities, which activity exposes this company to the most risk of being issued an emergency loan?
Retiring the oldest bond
Liquidate the entire inventory
Purchasing $18,000 (000) worth of plant and equipment
A $5 dividend
the correct answer is... View the full answer