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Which of the following would tend to increase a firms target debt ratio, other things held constant? O 1. The Federal Reserve tightens interest rates

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Which of the following would tend to increase a firms target debt ratio, other things held constant? O 1. The Federal Reserve tightens interest rates to fight inflation 2. The corporate tax rate is increased. 3. The company's stock price hits a new low. 4 The costs associated with bankruptoy increase

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