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Which of the following events is likely to encourage a company to raise its target debt ratio, other things held constant? *An increase in the
Which of the following events is likely to encourage a company to raise its target debt ratio, other things held constant?
*An increase in the personal tax rate.
*An increase in the company's operating leverage.
*The Federal Reserve tightens interest rates in an effort to fight inflation.
*The company's stock price hits a new high.
*An increase in the corporate tax rate.
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