Which of the Following Events Is Likely to Encourage a Company

question 61

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 company's stock price hitting a new high

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Definitions:

Pierre Joseph Proudhon

was a French philosopher and socialist, known for declaring "Property is theft!" and advocating for the concept of mutualism.

Henry George

An American political economist and journalist who advocated for the "single tax" on land to improve social equity.

Single-Tax Movement

A political and economic ideology advocating for a tax system based solely on land value.

Henry George

A 19th-century American economist and social reformer known for his advocacy of a single tax on land value.