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Author Question: Other things held constant, which event is most likely to encourage a firm to decrease the amount of ... (Read 663 times)

ega16

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Question 1

On which of the following items will a decrease in the debt ratio generally have no effect?

the firm’s beta


total risk


financial risk


business risk 



Question 2

Other things held constant, which event is most likely to encourage a firm to decrease the amount of debt in its capital structure?

Its sales become more stable over time.


The costs that would be incurred in the event of bankruptcy increase.


Management believes that the firm’s stock has become undervalued.


The corporate tax rate increases. 



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Marked as best answer by ega16 on Aug 7, 2023

fdsajkl

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ega16

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Reply 2 on: Aug 7, 2023
Excellent


miss.ashley

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

 

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