Which of the Following Events Is Likely to Encourage a Company

question 18

Multiple Choice

Which of the following events is likely to encourage a company to raise its target debt ratio?

• 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) Statements a and c are correct.
• E) All of the statements above are correct.

---

Definitions:

Public Land

Public land refers to land owned by the government and designated for public use, often for parks, recreation areas, or conservation.

Cattle Ranchers

Individuals or businesses involved in the raising and breeding of cattle for meat production or sale on a large scale.

Sheepherders

Individuals or workers engaged in the care and management of sheep, often involving grazing, moving herds to new pastures, and ensuring their health and safety.

Supremacy

The state or condition of being superior to all others in authority, power, or status.