Which of the following events is likely to encourage a company to raise its target debt ratio, other things held constant? a. statements a and b are correct. b. a decrease in costs incurred when filing for bankruptcy. c. an increase in the personal tax rate. d. the federal reserve tightens interest rates in an effort to fight inflation. e. an increase in the company's operating leverage.

An investor purchases 500 shares of nevada industries common stock for $22.00 per share today. at t = 1 year, this investor receives a $0.42 per share dividend (which is not reinvested) on the 500 shares and purchases an additional 500 shares for $24.75 per share. at t = 2 years, he receives another $0.42 (not reinvested) per share dividend on 1,000 shares and purchases 600 more shares for $31.25 per share. at t = 3 years, he sells 1,000 of the shares for $35.50 per share and the remaining 600 shares at $36.00 per share, but receives no dividends. assuming no commissions or taxes, the money-weighted rate of return received on this investment is closest to: