Which One of These Statements Is Correct

question 59

Multiple Choice

Which one of these statements is correct?

• A)Firms across all industries in the U.S.tend to have similar debt-to-equity ratios.
• B)The banking industry tends to have the lowest debt-to-equity ratio of any United States industry.
• C)Financial leverage lowers risk to equity holders.
• D)MM Propositions ignore bankruptcy costs.
• E)MM Propositions,without taxes,illustrate that a firm's overall cost of capital is affected by leverage.

Understand the concept of equivalent ratios and how to reduce them to their smallest terms.

Apply principles of proportions to solve for unknown quantities.

Understand and apply the concept of lowest terms in ratios.

Calculate the ratios of real-world quantities, including financial and material allocations.

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Definitions:

New Immigrants

Refers to the recent arrivals into a country, who typically come from different cultural, linguistic, or ethnic backgrounds than the majority population.

Urban Ethnic Enclaves

Neighborhoods in urban areas predominantly inhabited by a specific ethnic group, maintaining distinct cultural identities.

Suburbs

Residential areas located on the outskirts of a city or large town, often characterized by a lower population density than urban centers.

Environmental Racism

The practice of disproportionately exposing communities of color to pollution and environmental hazards, often due to discriminatory policies.