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