Sell new equity to purchase a new plant site

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Reference no: EM1362773

Armhurst Corporation is the maker of fine fitness equipment. Armburst's bank has been pressuring the firm to improve its liquidity. Which of the following actions proposed by the CFO do you believe will actually achieve this objective? Why or why not?

a. Sell new equity and use the proceeds to purchase a new plant site.

b. Use cash and marketable securities to pay off short-term bank borrowings and accoutns payable.

c. Borrow long-term and use the proceeds to pay off short-trem debt.

d. Sell surplus fixed assets and use the proceeds in marketable securities.

Reference no: EM1362773

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