Which one of the following factors would likely cause a firm to increase its use of
debt financing as measured by the debt-to-total-capital ratio?

Question

A. Increased economic uncertainty.

B. An increase in the degree of operating leverage.

C. An increase in the price-earnings ratio.

D. An increase in the corporate income tax rate.

TALHA SIRAJ SIRAJ · Answer

A. Increased economic uncertainty.

Hazem Labib · Answer

C. An increase in the price-earnings ratio.

D. An increase in the corporate income tax rate.

Ahmed Salah · Answer

Which one of the following factors would likely cause a firm to increase its use of debt financing as measured by the debt-to-total-capital ratio? An increase in the corporate income tax rate. ( Modigliani–Miller theorem)

Zakwan Maitla · Answer

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Mahesh Shrestha · Answer

The correct Answer is D: An increase in the corporate income tax rate

Anas Dawah · Answer

D.---------

An increase in the corporate income tax rate.

Shadhiya Shaju · Answer

An increase in the operating leverage

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Which one of the following factors would likely cause a firm to increase its use of debt financing as measured by the debt-to-total-capital ratio?

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