Which one of the following factors might cause a firm to increase the debt in its financial structure? A. An increase in the corporate income tax rate. B. Increased economic uncertainty. C. An increase in the federal funds rate. D. An increase in the price-earnings ratio.

Which one of the following factors might cause a firm to increase the debt in its financial structure? A. An increase in the corporate income tax rate. B. Increased economic uncertainty. C. An increase in the federal funds rate. D. An increase in the price-earnings ratio.

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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Question

Which one of the following factors might cause a firm to increase the debt in its financial structure?
A. An increase in the corporate income tax rate.
B. Increased economic uncertainty.
C. An increase in the federal funds rate.
D. An increase in the price-earnings ratio.

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