Debt Ratio
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Which of the following is likely to encourage a company to raise its target debt ratio
1. an increase in corporate tax rate
2. an increase in the personal tax rate 3an increase in the company's operating leverage
4. statements 1 and 3 5 all of the statements
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Solution Summary
The solution explains why a company would increase the debt ratio
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Answer 1 - an increase in corporate tax rate.
The interest paid is tax ...
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