Assuming that you are operating the firm in the


Assume that you are the manager of a financially distressed corporation, with $1.5 million in debt outstanding, which will mature in two months.

Your firm currently has $1 million cash on hand.

Assuming that you are operating the firm in the shareholders' best interests and that debt covenants prevent you from simply paying out the cash to shareholders as cash dividends, what should you do?

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Finance Basics: Assuming that you are operating the firm in the
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