Which of the Following Statements Is CORRECT,holding Other Things Constant

question 88

Multiple Choice

Which of the following statements is CORRECT,holding other things constant?

• A) Firms whose assets are relatively liquid tend to have relatively low bankruptcy costs,hence they tend to use relatively little debt.
• B) An increase in the personal tax rate is likely to increase the debt ratio of the average corporation.
• C) If changes in the bankruptcy code make bankruptcy less costly to corporations,then this would likely lead to lower debt ratios for corporations.
• D) An increase in the company's degree of operating leverage would tend to encourage the firm to use more debt in its capital structure so as to keep its total risk unchanged.
• E) An increase in the corporate tax rate would in theory encourage companies to use more debt in their capital structures.

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Definitions:

Jaw-thrust Maneuver

An emergency procedure used to open the airway of an unconscious patient by moving the jaw forward without tilting the head or neck.

Analyzes The Rhythm

The process of examining the pattern or waves in an electrocardiogram (EKG) or other physiological signals to diagnose conditions.

Bag-mask Device

A hand-held device used to provide ventilation to a patient who is not breathing or who is breathing inadequately.

Automated External Defibrillator

A portable life-saving device designed to diagnose and treat sudden cardiac arrest with electrical therapy.