Which Event Is Likely to Encourage a Company to Raise

question 45

Multiple Choice

Which event 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 company's stock price hitting a new high

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Definitions:

Management Revolution

A major shift or transformation in organizational management practices, often driven by new theories, technologies, or societal changes.

Nonprofit Organizations

Entities dedicated to furthering a particular social cause or advocating for a shared point of interest without seeking to distribute profits to members or leaders.

Managed

Being supervised or administrated to achieve certain goals or objectives.

Scholars

Individuals who engage in advanced study and research in a particular field, often contributing knowledge and insights.