Rajan and Zingales [ "What Do We Know About Capital

question 28

Multiple Choice

Rajan and Zingales [ "What Do We Know about Capital Structure? Some Evidence from International Data," 1995] found that leverage increases with ______.

• A) the tangibility of the firm's assets
• B) the presence of growth options
• C) the level of profitability
• D) All of the above are associated with higher leverage
• E) None of the above are associated with higher leverage

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