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:

Genetic Heritage

The genetically inherited characteristics and traits passed down from one's ancestors.

Genotype

The genetic makeup of an organism, which determines its characteristics and can be passed to its offspring.

Phenotype

The observable physical or biochemical characteristics of an organism, as determined by both genetic makeup and environmental influences.

Environmental Influences

Factors within the environment, such as social, physical, and cultural elements, that can affect an individual’s behavior, development, and well-being.