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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

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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 structure? The corporate tax rate decreases. The costs that would be incurred in the event of bankruptcy increase. None of the other answers is true Management believes that the firm's stock has become overvalued. The bargaining power of its labor force has increased over time

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