Which of the Following Is Correct

question 14

Multiple Choice

Which of the following is correct?

• A) Generally,debt to total assets ratios do not vary much among different industries although they do vary for firms within a particular industry.
• B) Utilities generally have very high common equity ratios due to their need for vast amounts of equity supported capital.
• C) The drug industry has a high debt to common equity ratio because their earnings are very stable and thus,can support the large interest costs associated with higher debt levels.
• D) Wide variations in capital structures exist between industries and also between individual firms within industries and are influenced by unique firm factors including managerial attitudes.
• E) Since most stocks sell at or around their book values,using accounting values provides an accurate picture of a firm's capital structure.

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Definitions:

One-Way Valves

Valves, particularly found in the veins and heart, that allow blood to flow in one direction and prevent backflow.

Dorsalis Pedis Artery

The artery that supplies blood to the surface of the foot, located on the top of the foot.

Popliteal Artery

The artery located behind the knee that supplies blood to the lower leg muscles and knee joint.

Posterior Tibial Artery

A major artery of the lower leg that supplies oxygenated blood to the posterior compartment of the leg and plantar surface of the foot.