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Ray Corporation has long-term debt of $1,200,000 and equity of $1,000,000. The board of directors has set a goal of 1:1 for the company's debt-equity ratio. Which of the following could the company employ to achieve this goal? A. Paying a stock dividend to the existing shareholders. B. Paying a dividend on its common stock. C. Issuing rights to purchase new common stock. D. Issuing new bonds. |