Discuss what a company subject to a debt-to-equity ratio covenant might to do to reduce the ratio

Question:

Discuss what a company subject to a debt-to-equity ratio covenant might to do to reduce the ratio so that it does not exceed the bank’s stipulated ratio. (Hint: Abandon conformance to when thinking of answers.)

GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...