Cash flow

Maneesh 30 April 2020 at 14:50 PM

Which one of the following factors would likely cause a firm to increase its use of debt financing as measured by the
debt-to-total-Equity ratio?
A) An increase in the corporate income tax rate.
B) Increased economic uncertainty.
C) An increase in the price-earnings ratio.
D) An increase in the degree of operating leverage

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FACULTY 10 May 2020 at 03:22 PM

An increase in the corporate income tax rate. (option D)

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