8. Circle the correct response (or type your choice if you email your responses in...

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8. Circle the correct response (or type your choice if you email your responses in the virtual world): A particular industry has been drastically deregulated. This has led to intense competition with all companies in the industry facing greater uncertainty about future cash flows. All things being equal managers of these companies will increase / decrease the levels of debt in the capital structure of these companies? (1 point) 9. Circle the correct response (or type your choice if you email your responses in the virtual world): All things being equal, if corporate taxes in the US increase, the levels of debt in the capital structure of corporations will likely increase / decrease? (1 point)

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