In General,the Capital Structures Used by U.S. Firms

question 59

Multiple Choice

In general,the capital structures used by U.S. firms:

• A) tend to overweigh debt in relation to equity.
• B) are easily explained in terms of earnings volatility.
• C) are easily explained by analyzing the types of assets owned by the various firms.
• D) tend to be those which maximize the use of the firm's available tax shelters.
• E) vary significantly across industries.

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Definitions:

Cigarettes

Thin cylinders of finely cut tobacco rolled in paper for smoking, often containing a filter.

Smokeless Tobacco

Tobacco products that are consumed without burning, including snuff, chewing tobacco, and snus.

Case-By-Case Basis

A method of decision-making where each situation is considered and decided upon individually, based on its unique circumstances.

Federal Trade Commission

A U.S. federal agency responsible for the enforcement of antitrust and consumer protection laws.