Which of the Following Statements Is False

question 28

Multiple Choice

Which of the following statements is false?

• A)Most of the investment by non-financial companies is generally financed from internal cash flow.
• B)Some companies effectively have negative debt/equity ratios because their holdings of cash and marketable securities are greater than their debt.
• C)Wald (1999)found that differences in leverage between major industrial countries are moderate.
• D)Many studies of capital structure include measures of non-debt tax shields with the expectation that they will be positively related to leverage.

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Definitions:

Line Voltage

The voltage present in the main electrical power lines, typically higher than what is safe for direct consumer use without transformation.

Wye-Connected

A method of connecting three-phase motors or transformers where one end of each coil is connected to form a central junction point (neutral) and the other ends are connected to the power supply.

Single-Phase Loads

Loads that operate on only one phase of an AC power system.

Three-Phase Transformer

A transformer setup that uses three sets of primary and secondary coils to transfer electrical energy in a three-phase system, enhancing efficiency and reducing power loss.