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Which of the following statements is likely to encourage a firm to increase its debt ratio in its capital structure? a. Management believes that the

Which of the following statements is likely to encourage a firm to increase its debt ratio in its capital structure? a. Management believes that the firms stock is overvalued. b. None of the statements is correct. c. Its corporate tax rate declines. d. Statements a and b are correct. e. Its sales become less stable over time.

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