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.