Question $1(1$ point$)$

Happy Doggies Inc. $($HDI$)$ is currently assessing its requirement for new capital for its upcoming year. Management has decided that it will raise new funds to recapitalize. Which of the following statements about how this would be accomplished is true?

a$)$ HDI will raise sufficient cash to invest in a new plant to manufacture a new line of products.

b$)$ HDI will raise sufficient cash to finance its increased costs in its raw material purchases.

c$)$ HDI will raise sufficient cash to increase its amount of debt and lower its equity in its current capital structure.

d$)$ HDI will raise sufficient cash to build financial strength.