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

question 93

Multiple Choice

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

• A)tend to overweigh debt in relation to equity.
• B)generally result in debt-equity ratios between 0.45 and 0.60.
• C)are fairly standard for all SIC codes.
• D)tend to be those which maximize the use of the firm's available tax shelters.
• E)vary significantly across industries.

---

Definitions:

Normal Probability Distribution

A bell-shaped curve distribution characterized by its mean and standard deviation, with data symmetrically distributed around the mean.

Standard Deviation

A statistical measurement that quantifies the dispersion or spread of a set of data points around their mean.

Normal Probability Distribution

A bell-shaped curve distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence.

Discrete Probability Distributions

Probability distributions that deal with variables that have distinct, separate values.