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Two of the statements below is more likely to encourage the use of debt in the capital structure, select the correct 2.

Two of the statements below is more likely to encourage the use of debt in the capital structure, select the correct 2.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Two of the statements below is more likely to encourage the use of debt in the capital structure, select the correct 2. * An increase in the personal income tax An increase in the corporate tax rate All statements are correct. Decrease in the firm's degree of operating leverage An increase in the value of the firm.
Transcribed Image Text:Two of the statements below is more likely to encourage the use of debt in the capital structure, select the correct 2. * An increase in the personal income tax An increase in the corporate tax rate All statements are correct. Decrease in the firm's degree of operating leverage An increase in the value of the firm.
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