Increase firms target debt ratio

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Reference no: EM131185117

Which of the following would tend to increase a firm's target debt ratio, other things held constant?

a. The costs associated with filing for bankruptcy increase.

b. The corporate tax rate is increased.

c. The personal tax rate is increased.

d. The Federal Reserve tightens interest rates in an effort to fight inflation.

e. The company's stock price hits a new low.

Reference no: EM131185117

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