Which of the Following Is Not Empirically True When Formulating

question 48

Multiple Choice

Which of the following is not empirically true when formulating capital structure policy?

• A)Some firms use no debt.
• B)Most corporations have low debt-asset ratios.
• C)There are no differences in the capital-structure of different industries.
• D)Debt levels across industries vary widely.
• E)Debt ratios in most countries are considerably less than 100%.

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