Which of the Following Would Increase the Likelihood That a Company

question 8

Multiple Choice

Which of the following would increase the likelihood that a company would increase its debt ratio, other things held constant?

• A) An increase in the corporate tax rate.
• B) An increase in the personal tax rate.
• C) The Federal Reserve tightens interest rates in an effort to fight inflation.
• D) The company's stock price hits a new low.
• E) An increase in costs incurred when filing for bankruptcy.

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Definitions:

HSA

Health Savings Account; a savings account that allows individuals to set aside money pre-tax for medical expenses.

Form 8889

The tax form used for reporting contributions, distributions, and taxes related to Health Savings Accounts (HSAs).

HSA

A Health Savings Account, a tax-advantaged account used to save for medical expenses.

Health Insurance Premiums

The amounts paid for health insurance coverage, which may be tax-deductible under certain conditions.