Which of the Following Statements Is FALSE

question 7

Multiple Choice

Which of the following statements is FALSE?

• A)The data show a clear preference for equity as a source of external financing for the total population of U.S.firms.
• B)Debt as a fraction of firm value has varied in a range from 30-45% for the average firm.
• C)Capital expenditures greatly exceed firms' external financing,implying that most investment and growth is supported by internally generated funds,such as retained earnings.
• D)Firms in growth industries like biotechnology or high technology carry very little debt,whereas airlines,auto makers,utilities,and financial firms have high leverage ratios.

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Definitions:

Factor

An element contributing to a particular result or situation.

Surface Traits

Observable qualities or characteristics of an individual's personality that can easily be inferred from behavior, as opposed to deeper, less observable traits.

Personality Characteristics

Traits that describe an individual's consistent patterns of thought, feeling, and behavior.

Dynamic Traits

Traits that describe our motivations and interests.