Which of the Following Statements Regarding a Firm's Choice of Financing

question 37

Multiple Choice

Which of the following statements regarding a firm's choice of financing is false?

• A)Firms with higher marginal tax rates are more likely to issue debt than equity.
• B)Firms with greater profitability are more likely to issue debt than equity.
• C)Firms with more tangible assets are likely to use more debt in their capital structures.
• D)Firms with fewer intangible assets are likely to use less debt in their capital structures.

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Definitions:

Bipolar Disorders

A psychological disorder marked by severe fluctuations in mood, encompassing intense highs (mania or hypomania) and profound lows (depression).

Lithium Carbonate

A chemical compound used primarily in the treatment of bipolar disorder, acting as a mood stabilizer to prevent extreme shifts in mood.

Biomedical Therapy

Treatments for psychological disorders that involve interventions on a biological level, such as medication, surgical procedures, or alterations in diet.

Antipsychotic Drugs

Medications used to manage psychosis, including symptoms such as delusions, hallucinations, and disordered thinking.