Which of the Following Events Is Likely to Encourage a Company

question 48

Multiple Choice

Which of the following events is likely to encourage a company to raise its target debt ratio,other things held constant?

• A) An increase in the corporate tax rate.
• B) An increase in the personal tax rate.
• C) An increase in the company's operating leverage.
• D) The Federal Reserve tightens interest rates in an effort to fight inflation.
• E) The company's stock price hits a new high.

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Definitions:

Affective

Relating to moods, feelings, and attitudes; often used in psychology to describe emotions or responses.

Cognitive

Refers to processes related to thinking, reasoning, problem-solving, and remembering.

Projective Techniques

Psychological assessment tools that use ambiguous stimuli to elicit responses revealing aspects of an individual's personality.

Humanistic Clinicians

Therapists or counselors who apply principles of humanistic psychology, focusing on individual potential and stressing the importance of growth and self-actualization.