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Author Question: Which statement regarding debt is correct, other things held constant? (Read 2755 times)

mimie

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on: Aug 7, 2023
Which statement regarding debt is correct, other things held constant?

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If changes in the bankruptcy code make bankruptcy more costly to corporations, then this would likely lead to higher debt ratios for corporations.


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A decrease in the corporate tax rate is likely to encourage a company to use less debt in its capital structure.


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A decrease in the company’s degree of operating leverage is likely to encourage a company to use less debt in its capital structure.


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A decrease in the personal tax rate is likely to decrease the debt ratio of the average corporation.

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by mimie on Aug 7, 2023

MajorWaffle

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Reply #1 on: Aug 7, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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mimie

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Reply 2 on: Aug 7, 2023
Great answer, keep it coming :)

skipfourms123

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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