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Other things held constant, which of the following events is most likely to encourage a firm to increase the amount of debt in its capital
Other things held constant, which of the following events is most likely to encourage a firm to increase the amount of debt in its capital structure?
| a. | The costs that would be incurred in the event of bankruptcy increase. |
| b. | Management believes that the firm's stock has become overvalued. |
| c. | Its degree of operating leverage increases. |
| d. | The corporate tax rate increases. |
| e. | Its sales become less stable over time. |
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