Which of the Following Statements Is CORRECT

question 74

Multiple Choice

Which of the following statements is CORRECT?

• A) Generally,debt ratios do not vary much among different industries,although they do vary among firms within a given industry.
• B) Electric utilities generally have very high common equity ratios because their revenues are more volatile than those of firms in most other industries.
• C) Airline companies tend to have very volatile earnings,and as a result they generally have high target debt-to-equity ratios.
• D) Wide variations in capital structures exist both between industries and among individual firms within given industries.These differences are caused by differing business risks and also managerial attitudes.
• E) Since most stocks sell at or very close to their book values,book value capital structures are typically adequate for use in estimating firms' weighted average costs of capital.

---

Definitions:

Multidimensional Theories

These are frameworks that understand phenomena, particularly in psychology and social sciences, from multiple perspectives and dimensions to provide a more comprehensive explanation.

Abnormal Psychology

A branch of psychology that studies unusual patterns of behavior, emotion, and thought, which may or may not be understood as precipitating a mental disorder.

Culturally Appropriate Care

Healthcare or social care that is sensitive to and respectful of the cultural expectations and needs of individuals or groups.

Diverse Cultures

The existence and acknowledgment of a variety of cultural backgrounds, traditions, and practices within a community or society.