Which of the following events is likely to encourage a company to raise its target debt ratio, other things held constant?
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 company’s operating leverage.
B. An increase in the corporate tax rate.
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 personal tax rate.
Answer is_____A___. Why?
Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code “Newclient”
The post Which of the following events is likely to encourage a company to raise its target debt ratio, other things held constant? appeared first on Superb Professors.
For any questions, feedback, or comments, we have an ethical customer support team that is always waiting on the line for your inquiries.