All of the following are likely to result in the use of less debt in a company's capital structure except:
A) desire to maintain financial flexibility.
B) desire to maintain a high credit rating.
C) insufficient internal funds.
D) a decrease in a company's marginal tax rate.

Question

Quizplus · Accepted Answer

Insufficient internal funds would likely lead a company to use more debt, not less, as it may need to borrow to finance its operations or investments.

All of the Following Are Likely to Result in the Use