Discuss the issues that barbara should consider

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Barbara Monroe, the chief financial officer of Helaine Inc., is considering the options available to her for financing the company"s new plant. Shortterm interest rates right now are 6%, and long-term rates are 8%. The company"s current ratio is 2.2:1. If she finances the new plant with short-term debt, the current ratio will fall to 1.5:1. Briefly discuss the issues that Barbara should consider.

Reference no: EM13532959

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Discuss the issues that barbara should consider : If she finances the new plant with short-term debt, the current ratio will fall to 1.5:1. Briefly discuss the issues that Barbara should consider.
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