Chasebry Company is in need of another factory building. The building will cost $100,000. Chasebry is considering the following possible financing alternatives to acquire the building.

(a) Lease the building under an operating lease.

(b) Issue common stock in the amount of $100,000.

(c) Negotiate a long-term bank loan for $100,000.

(d) Negotiate a long-term bank loan for $60,000 and increase short-term borrowing by $40,000.

Currently, Chasebry has current assets of $150,000, noncurrent assets of $325,000, current liabilities of $60,000, and noncurrent liabilities of $140,000. Under existing loan covenants, Chasebry must maintain a current ratio of 2.0 or more and a debt-to-equity ratio of less than 0.80. Which, if any, of the financing alternatives will allow Chasebry to avoid violating the loan covenants?