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Company ABC needs external capital to finance a new product line.

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Company ABC needs external capital to finance a new product line. Its operating leverage is high, and its revolving credit agreement contains a ratings trigger. What will Company ABC MOST LIKELY do to finance its new product line?

A.

Issue convertible debentures.

B.

Issue long-term notes.

C.

Issue common stock.

D.

Use retained earnings.

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AFP CTP Summary

  • Vendor: AFP
  • Product: CTP
  • Update on: Oct 21, 2025
  • Questions: 1076
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TESTED 21 Oct 2025