Which of the following are likely to encourage a firm to increase the amount of debt in
Question:
a. The corporate tax rate increases.
b. The personal tax rate increases.
c. The firm's assets become less liquid.
d. Changes in the bankruptcy code make bankruptcy less costly.
e. The firm's earnings become more volatile.
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a The corporate tax rate increases The corp...View the full answer
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Related Book For 
Fundamentals of Financial Management
ISBN: 978-0324272055
10th edition
Authors: Eugene F. Brigham, Joel F. Houston
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