Which of the Following Would Tend to Increase a Firm's

question 40

Multiple Choice

Which of the following would tend to increase a firm's target debt ratio,other things held constant?

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

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