Capital Structure Which of the following companies do you think would have more debt in its capital structure? Briefly explain your answer. (a) A company selling toothpaste (b) A company selling luxury handbaga 2. When the government announces an increase in corporate tax rates, what do you think is the most. likely scenario? Briefly explain your answer. (a) Companies increase their debt/capital ratio (b) Companies decrease their debt/capital ratio 3. If a company is very uncertain about its future financing needs, the company will tend to have debt in its capital structure. Briefly explain your answer. (a) Less (b) More