Debt equity ratio question


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

[A] An increase in the personal tax rate.

[B] A decrease in the company's business risk.

[C] An increase in costs incurred when filing for bankruptcy.

[D] An increase in the corporate tax rate.

[E] Statements b and d are correct.

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Finance Basics: Debt equity ratio question
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