Which of the Following Statements Is CORRECT

question 10

Multiple Choice

Which of the following statements is CORRECT?

• A) Generally, debt-to-total-assets 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) Drug companies (prescription, not illegal!) generally have high debt-to-equity ratios because their earnings are very stable and, thus, they can cover the high interest costs associated with high
• Debt levels.
• 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 almost always adequate for use in
• Estimating firms' costs of capital.

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Definitions:

STAT Medication

Prescribed drugs that are to be given immediately and only once in a medical emergency situation.

Route Of Administration

The path by which a drug, fluid, poison, or other substance is taken into the body, such as orally, intravenously, or topically.

Relaxation Therapy

A range of techniques aimed at reducing stress and promoting physical and mental well-being, such as meditation or deep-breathing exercises.

Long-term Outcome

The eventual result or effect of an intervention, condition, or disease over an extended period.