Which of the following are likely to encourage a firm to increase the amount of debt in

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Which of the following are likely to encourage a firm to increase the amount of debt in its capital structure?

a. The corporate tax rate increases.

b. The personal tax rate increases.

c. The firm's assets become less liquid.

d. Changes in the bankruptcy code make bankruptcy less costly.

e. The firm's earnings become more volatile.

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Fundamentals Of Financial Management Concise

ISBN: 9780324258721

4th Edition

Authors: Eugene F. Brigham, Joel F. Houston

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