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Which of the following events most likely to encourage a firm to increase the amount of debt in its capital structure? a. Its sales become

Which of the following events most likely to encourage a firm to increase the amount of debt in its capital structure?

a. Its sales become less stabel over time

b. The costs that would be incurred in the event of bankrupcy increase

c. The corporate tax rate increases

d. Its degree of operating leverage increases

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