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:

Physical Brain

The tangible, biological organ contained within the skull, responsible for neurological functions and cognitive processes.

Mind

The mind encompasses the array of cognitive faculties by which consciousness, perception, thinking, judgement, and memory are experienced and processed.

Determinism

The idea in philosophy that every event and moral decision is fully caused by preceding factors.

Predict

To declare or indicate in advance; to forecast the occurrence of something.