Which of the Following Events Is Likely to Encourage a Company

question 52

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:

Experiments

Methodological approaches and techniques in research designed to test hypotheses under controlled conditions to establish cause-and-effect relationships.

Variable

is a characteristic, number, or quantity that can be measured or quantified and can vary among individuals or over time.

Intervention

The act of becoming involved in an issue, problem, or conflict to alter the outcome or influence the situation.

Cirrhosis

A chronic liver disease marked by degeneration of liver tissue, fibrosis, and the formation of scar tissue, often resulting from long-term alcohol abuse or hepatitis.