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Which of the following events is most likely to encourage a firm to DECREASE the...

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Question

Accounting

Which of the following events is most likely to encourage a firm to DECREASE the amount of debt in its capital structure with other things held constant?

Group of answer choices

Its degree of operating leverage decreases.

The corporate tax rate increases.

Management believes that the firm's stock has become overvalued.

Its sales become more stable over time.

The costs that would be incurred in the event of bankruptcy decrease.

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