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    Debt ratio, capital structure

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    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.

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    https://brainmass.com/business/capital-structure-and-firm-value/debt-ratio-capital-structure-178443

    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 ...

    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.

    $2.19

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