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Using debt financing would assist a public company in minimizing stock devaluation while needing short-term working capital for several reasons. When a company opts for debt financing, it borrows funds rather than issuing new equity. This approach helps maintain the existing shareholder structure and does not dilute the ownership or value of the current shares, which is a key concern when a company is trying to prevent stock devaluation.

Additionally, debt financing can provide quick access to capital, enabling the company to manage its short-term working capital needs effectively. By leveraging loans or bonds, the company can secure funds without the negative implications associated with issuing new equity, such as signaling to the market that the company's share price is undervalued or that it is in financial distress.

Other options present alternative strategies but may not effectively address the concern of minimizing stock devaluation. Redeeming outstanding shares can initially seem beneficial, but it often requires substantial cash reserves, which could exacerbate the need for working capital. Issuing additional shares might indeed provide immediate funds, but it could lead to stock dilution, causing existing shares to lose value as the market reacts to the increase in share supply. Lastly, paying out dividends, while it may attract certain investors, can further strain the company's cash flow, leaving less available