Which of the Following Statements Is Correct

question 10

Multiple Choice

Which of the following statements is correct?

• A)Generally, debt-to-total-assets ratios do not vary much among different industries, although they do vary among firms within a given industry.
• B)Electric utilities generally have very high common equity ratios because their revenues are more volatile than those of firms in most other industries.
• C)Prescription drug companies generally have high debt-to-equity ratios because their earnings are very stable, and therefore they can cover the high interest costs associated with high debt levels.
• D)Wide variations in capital structures exist both between industries and among individual firms within given industries. These differences are caused by differing business risks and also managerial attitudes.

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Definitions:

24-hour Recall

A dietary assessment tool where individuals report all the foods and beverages consumed during the previous 24 hours.

Food Diary

A record used to track what an individual eats, typically to monitor dietary habits for health or weight management purposes.

Morbidly Obese

Morbid obesity is a condition characterized by an individual having a Body Mass Index (BMI) of 40 or higher, which significantly increases the risk of various health issues.

BMI

Body Mass Index, a measure of body fat based on height and weight that applies to adult men and women.