Which of the following is likely to encourage a company to use more debt in its capital structure?

A. a decrease in the corporate tax rate.

B. firm adds a business division (representing over 40% of its total sales) from a highly cyclical industry

C. a significant increase in the companys degree of operating leverage (DOL).

D. the firm outsourcing its personnel services thereby replacing fixed cost of the HRM department with an hourly fee based on services provided to the vendor.

E. both statements b and c are correct.