Which one of the following factors might cause a firm to increase the debt in its financial structure? A. An increase in the corporate income tax rate. B. Increased economic uncertainty. C. An increase in the federal funds rate. D. An increase in the price-earnings ratio.

Which one of the following factors might cause a firm to increase the debt in its financial structure? A. An increase in the corporate income tax rate. B. Increased economic uncertainty. C. An increase in the federal funds rate. D. An increase in the price-earnings ratio.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter18: The Management Of Accounts Receivable And Inventories

Section: Chapter Questions

Problem 12QTD

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Question

Which one of the following factors might cause a firm to increase the debt in its financial structure?
A. An increase in the corporate income tax rate.
B. Increased economic uncertainty.
C. An increase in the federal funds rate.
D. An increase in the price-earnings ratio.

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