Which One of the Following Has the Greatest Tendency to Increase

question 33

Multiple Choice

Which one of the following has the greatest tendency to increase the percentage of debt included in the optimal capital structure of a firm?

• A)exceptionally high depreciation expenses
• B)very low marginal tax rate
• C)substantial tax shields from other sources
• D)low probabilities of financial distress
• E)minimal taxable income

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Definitions:

Medical Advice

Guidance or recommendations regarding health, given by a healthcare professional.

Potential Stressor

A situation, event, or condition that has the possibility to cause stress.

Secondary Appraisal

The phase in the stress response process where an individual evaluates their capability to cope with or respond to an event perceived as stressful.

Coping Abilities

The varied strategies and mechanisms individuals use to manage stress, adapt to challenging situations, and overcome obstacles in daily life.