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:

Relevant Evidence

Evidence that is pertinent and bears directly on the matter in dispute, making the existence of any fact more or less probable.

Supervising Attorney

A licensed lawyer responsible for overseeing the work of less experienced lawyers or legal interns, ensuring compliance with legal standards.

Witness Statements

Written or oral accounts provided by individuals who have direct knowledge of an event or situation relevant to a legal case.

Self-Authentication

A legal principle that allows certain documents to be admitted as evidence in court without the need for further validation of their authenticity by external testimony.