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Other things held constant, which of the following events is most likely to encourage a firm to increase the proportion of debt in its capital

Other things held constant, which of the following events is most likely to encourage a firm to increase the proportion of debt in its capital structure? A.The bargaining power of its labor force has increased over time. B.None of the other answers is true C. The corporate tax rate decreases. D.The costs that would be incurred in the event of bankruptcy increase. E.Management believes that the firm's stock has become overvalued.

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