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Which of the following actions is most likely to cause a company to reduce the amount of debt in its capital structure?

Which of the following actions is most likely to cause a company to reduce the amount of debt in its capital structure? 

Question 19 options:


A corporate tax cut


A corporate tax increase


A decrease in interest rates


Quantitative Easing by the Federal Reserve


A company with an average WACC of 10% adjusts for risk by adding 2% for high risk projects and subjecting 2% for low risk projects. Which of the following projects should the company accept?

Question 11 options:


An average risk project with an IRR of 10%


Low risk project with an IRR of 7%


High risk project with an IRR of 13%


High risk project with IRR of 11%

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Question 19 Quantitative easing by the Federal Reserve... View the full answer

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