An increase in the ____________ is likely to encourage a corporation to increase its debt ratio. - 3017

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An increase in the ____________ is likely to encourage a corporation to increase its debt ratio.

          a.   corporate tax rate

          b.   personal tax rate

          c.   company’s degree of operating leverage

          d.   expected cost of bankruptcy

Solution Description

An increase in the ____________ is likely to encourage a corporation to increase its debt ratio.