Which of the following is not a reason to reduce financial distress?
A) Enhanced debt capacity
B) Reduced WACC
C) Better currency exchange ratio
D) Ensure adequate cash flows

Question

Quizplus · Accepted Answer

Better currency exchange ratio is not a reason to reduce financial distress. The other options listed (enhanced debt capacity, reduced WACC, and ensuring adequate cash flows) are all reasons why reducing financial distress is beneficial for a company.

Which of the Following Is Not a Reason to Reduce