In Examining the Question as to Whether or Not Capital

question 4

Multiple Choice

In examining the question as to whether or not capital structures are randomly selected,we generally find that:

• A) capital structures show strong industry patterns.
• B) within industries,the most profitable companies borrow the least.
• C) corporate and personal income taxes influence capital structures,but taxes alone cannot explain differences in leverage across firms,industries or countries.
• D) shareholders consider leverage-increasing events to be "good news" and leverage-decreasing events to be "bad news."
• E) All of the above

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Definitions:

Plant Development

The process by which a plant grows and develops, governed by both genetic and environmental factors.

Grafting

A horticultural technique where tissues of plants are joined so as to continue their growth together, often used to propagate fruit trees or repair damaged plants.

Polyploidy

Condition of having three or more of each type of chromosome characteristic of the species.

Inducing Cutting

The process of stimulating the division or propagation of plants through the cutting of plant parts.