Which of the following would increase the likelihood that a company would increase its debt ratio, other things held constant? a. An increase in the corporate tax rate. b. An increase in the personal tax rate. c. The Federal Reserve tightens interest rates in an effort to fight inflation. d. The company's stock price hits a new low. e. An increase in costs incurred when filing for bankruptcy.
Which of the following would increase the likelihood that a company would increase its debt ratio, other things held constant? a. An increase in the corporate tax rate. b. An increase in the personal tax rate. c. The Federal Reserve tightens interest rates in an effort to fight inflation. d. The company's stock price hits a new low. e. An increase in costs incurred when filing for bankruptcy.
Chapter8: Fraud, Internal Controls, And Cash
Section: Chapter Questions
Problem 17MC: What would be a reason a company would want to understate income? A. to help nudge its stock price...
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Which of the following would increase the likelihood that a company would increase its debt ratio, other things held constant?
a. |
An increase in the corporate tax rate. |
b. |
An increase in the personal tax rate. |
c. |
The Federal Reserve tightens interest rates in an effort to fight inflation. |
d. |
The company's stock price hits a new low. |
e. |
An increase in costs incurred when filing for bankruptcy. |
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