All else the same, taxes and bankruptcy claims on the cash ﬂows of the ﬁrm will tend to increase
with decreases in the debt/equity ratio?

Name: All else the same, taxes and bankruptcy claims on the cash ﬂows of the ﬁrm will tend to increase with decreases in the debt/equity ratio?
Brand: Quizplus
Rating: 4.8 (47 reviews)

Question

Quizplus · Accepted Answer

Taxes and bankruptcy claims on the cash flows of the firm will tend to increase with decreases in the debt/equity ratio because the firm will have less debt to cover these expenses.

All Else the Same, Taxes and Bankruptcy Claims on the Cash