Which of the Following Events Is Likely to Encourage a Company

question 70

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 personal tax rate.
• B) An increase in the company's operating leverage.
• C) The Federal Reserve tightens interest rates in an effort to fight inflation.
• D) The company's stock price hits a new high.
• E) An increase in the corporate tax rate.

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Definitions:

Green Economies

Economic development models that emphasize sustainability, reducing environmental risks, and enhancing resource efficiency.

Institutional Frameworks

The systems of formal laws, regulations, and procedures, as well as informal conventions and practices that shape social, economic, and political interactions.

Statutory Laws

Laws that are written and enacted by a legislative body, such as a parliament or congress, as opposed to common law or regulatory law.