Likely encourage a firm to increase the debt

Assignment Help Financial Management

Reference no: EM131044809

Which of the following would likely encourage a firm to increase the debt in its capital structure?

a. Corporate tax rate increases

b. personal tax rate increases

c. Due to market changes, the firm's assets become less liquid

d. changes in the bankruptcy code make bankruptcy less costly to the firm

e. the firm's sales and earnings become more volatile

Reference no: EM131044809

Questions Cloud

Says a difference in proportions : If you have a claim that says a difference in proportions is greater than 0, but the confidence interval test includes 0, do you reject or accept the claim?

Hypothetical company based in the united kingdom : Kensington plc, a hypothetical company based in the United Kingdom, offers its employees a defined benefit pension plan. Kensington complies with IFRS. Th e assumed discount rate that the company used in estimating the present value of its pension..

Which is defined as a major life activity : In Guz v. Bechtel National, Guz was fired by Bechtel after 22 years of service. The company eliminated his position despite his good performance and no financial problems in the company. The California high court held that Guz could:

Kind of stuck and any help would be much appreciated : If ACAC and BCBC are the events complementary to AA and BB, and p(A|B)>p(A)p(A|B)>p(A) and p(BC)>0p(BC)>0, prove that p(AC|BC)>p(AC)p(AC|BC)>p(AC). Been trying to get my head around this but kind of stuck and any help would be much appreciated.

Likely encourage a firm to increase the debt : Which of the following would likely encourage a firm to increase the debt in its capital structure?

Analyst with a uk-based investment firm : Percy Byron, CFA, is an equity analyst with a UK-based investment fi rm. One firm Byron follows is Nin Mount PLC, a UK-based company. On 31 December 2008, Nin Mount paid £320 million to purchase a 50 percent stake in Boswell Company.

What is the effective annual rate for loans : What is the effective annual rate (EAR) for each of the following one-year, $1,000 bank loans? A loan with an APR of 5.8%, compounded monthly. A loan with an APR of 5.8%, compounded annually, that also has a compensating balance requirement of 9.5% (..

Invoices are sampled at random : A large industrial firm allows a discount on any invoice that is paid within 30 days. Of all invoices, 10% receive the discount. In a company audit, 15 invoices are sampled at random. The mean (average) value of the number of the 15 sampled invoic..

Normal approximation to this binomial distribution : The total number of employees who leave each year follows a binomial distribution. Now, we want to use the normal approximation to this binomial distribution. Then in this normal distribution, the mean is ______ and the standard deviation is _____..

User Account

All Pages