Purchase Solution

Debt ratio, capital structure

Not what you're looking for?

Ask Custom Question

Which of the following would increase the likelihood that a company would increase its debt ratio in its capital structure?

1. An increase in costs incurred when filing for bankruptcy
2. An increase in the corporate tax rate.
3. An increase in the personal tax rate
4. A decrease in the firm's business risk.
5. Statements b and d are correct.

Purchase this Solution

Solution Summary

Answer to a multiple choice question on the factor(s) that would increase the likelihood that a company would increase its debt ratio in its capital structure.

Solution Preview

Which of the following would increase the likelihood that a company would increase its debt ratio in its capital structure?

1. An increase in ...

Purchase this Solution


Free BrainMass Quizzes
Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

Lean your Process

This quiz will help you understand the basic concepts of Lean.

Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.