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(16%) Which of the following would likely encourage a firm to increase the debt in its capital structure? Identify your choices clearly and explain your

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(16%) Which of the following would likely encourage a firm to increase the debt in its capital structure? Identify your choices clearly and explain your answers briefly. a. The corporate tax rate increases. b. The personal tax rate increases c. Due to market changes, the firm's assets become less liquid. d. Changes in the bankruptcy code make bankruptcy less costly to the finm. po

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