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:

Establish Rapport

The process of building a positive or harmonious relationship with someone, which is based on understanding, trust, and respect.

Varied Vocabulary

The use of a wide range of words and phrases to enhance the richness and clarity of communication.

Bad News

Information that is unwelcome, disappointing, or distressing to the recipient.

Startling Statistics

Startling Statistics are surprising or shocking numerical data that grab attention and can change perceptions or encourage actions.