Encouraging Debt in Capital Structure - CFA® Level 1 Exam Preparation

Encouraging Debt in Capital Structure

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Which of the following is most likely to encourage a company to use more debt in its capital structure?

A. All of these answers are correct.

B. An increase in unit production.

C. An increase in the corporate tax rate.

D. An increase in the company's degree of operating leverage.

E. An increase in the personal tax rate.

Click on the arrows to vote for the correct answer

A. B. C. D. E.

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