Which of the Following Is Not Empirically True When Formulating

question 57

Multiple Choice

Which of the following is not empirically true when formulating capital structure policy?

• A) Some firms use no debt.
• B) Most corporations have low debt-asset ratios.
• C) There are no differences in the capital-structure of different industries.
• D) Debt levels across industries vary widely.
• E) Debt ratios in most countries are considerably less than 100%.

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