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satela [25.4K]
3 years ago
13

Other things held constant, which of the following events is most likely to encourage a firm to increase the amount of debt in i

ts capital structure?
A. The costs that would be incurred in the event of bankruptcy increase.
B. The proportion of fixed costs (operating leverage) increases.
C. The corporate tax rate increases.
D. Its sales become less stable over time
Business
1 answer:
True [87]3 years ago
8 0

Answer: Option (c) is correct.

Explanation:

Correct Option: The corporate tax rate increases.

If there is an increase in the corporate tax rate then this will induce the firms to increase the amount of their debt. This is due to the fact that the firms with more debt are going to pay less tax because of the large interest expense. Due to large interest expenses, their income before tax reduces.

Hence, large corporate taxes encourage firms to increase the amount of debt. Therefore, the firms with no debt pays higher taxes than the firms with higher amount of debt.

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What are the requirements for being a dental assistant?
AlexFokin [52]
1. Determine whether you possess general characteristics to become a dentist.
2.Complete your prerequisite educational requirements.
3.Take the Dental Admissions Test (DAT).
4.Apply for admission to a dental school.
5.Attend dental school.

7 0
3 years ago
A stock you own earned: $200, $500, $100, and $700 over the last four years. What was the mean annual gain in value over the fou
ira [324]

Answer:

$375

Explanation:

200+500+100+700= 1,500

1,500/4=375

7 0
3 years ago
Read 2 more answers
19th century how successful were labor organizations in improving the working conditions for, and advancing the interests of ind
Alex Ar [27]

Answer:

19th century,labor organizations were not very  successful in improving the working conditions and advancing the interest of industrial workers in united states.

<u>Explanation:</u>

Workers formed union.These unions give them immense power.These unions have a leader selected from among the workers only.Leader act as a representative of whole union.These unions can bargain on behalf of all the workers for providing them better working conditions,more wages,bonus.

They used strikes to force the employers to increase wages and provide better working conditions.These unions worked hard to stop child labor,give health benefits and help those workers who  got injured .In 19th century trade unions were formed by skilled workers.

Knights of labor was a  trade union formed in 1869.It attracted large number of workers and hoped to improve their working conditions.In 1880 skilled labor left Knight of labor and joined American federation of labor.It provides better working conditions.It had 500000 members by 1900.

Despite the efforts unions made less progress in this Era .

8 0
3 years ago
The area of a project site that is used by the building structure, defined by the perimeter of the building plan is the:
Gekata [30.6K]
Answer:  "building footprint" .
_____________________________________
6 0
3 years ago
Kocher Steel typically achieves one of three production levels in any given year: 8 million pounds of steel, 10 million pounds o
AveGali [126]

Answer:

Fixed cost

Explanation:

Variable costs are costs that change with change in the quantity of the goods or services produced by the business. For example the cost of raw materials.

Fixed costs are costs that do not change with change in the quantity of the goods or services produced by the business. For example interest payments.

In the given question, payment of $10 per pound has to be made no matter what the production level for the year, so this is an example of <u>fixed cost</u>

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3 years ago
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