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A Firm Is Likely to Select a Higher Debt-To-Equity Ratio

Question 83

Multiple Choice

A firm is likely to select a higher debt-to-equity ratio if


A) interest rates are unusually high.
B) both corporate and individual income taxes are expected to increase in the near future.
C) the firm is very risk averse.
D) All of the above would be likely to increase the debt-to-equity ratio.

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