Which of the Following Is True of Companies in Japan

question 7

Multiple Choice

Which of the following is true of companies in Japan with respect to their capital structures?

• A) Companies in Japan are financed entirely through equity.
• B) Companies in Japan use greater proportions of debt than others.
• C) Dividends are taxed as income in Japan.
• D) Equity monitoring costs are low in Japan.
• E) Companies in Japan raise most of their corporate debt through publicly issued bonds.

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Definitions:

Flexible Variable

A factor in a situation or system that can be changed or adjusted to suit different conditions or requirements.