Reference no: EM132696753

Problem 1: Which of the following actions could Comfy Home's owners use to reduce its leverage?

Select all that apply.
Group of answer choices

Option 1: Raise additional equity capital.

Option 2: Randolf Singh sells all his shares in Comfy Home to Tenisa Singh.

Option 3: Sell PP&E at book value and use the cash to pay off creditors.

Option 4: Pay off long-term debt.

Option 5: Increase net profits (and thereby retained earnings).

Option 6: Use short-term debt to pay off long-term loans.