Which of the Following Statements Is FALSE

question 7

Multiple Choice

Which of the following statements is FALSE?

• A)The data show a clear preference for equity as a source of external financing for the total population of U.S.firms.
• B)Debt as a fraction of firm value has varied in a range from 30-45% for the average firm.
• C)Capital expenditures greatly exceed firms' external financing,implying that most investment and growth is supported by internally generated funds,such as retained earnings.
• D)Firms in growth industries like biotechnology or high technology carry very little debt,whereas airlines,auto makers,utilities,and financial firms have high leverage ratios.

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Definitions:

Acquire

Acquiring involves obtaining or coming into possession of something, often through purchase, discovery, or transfer.

Self-Fulfilling Prophecies

are predictions or expectations that, merely by being made, influence behaviors to ensure they come true.

Expectations

Beliefs or forecasts about future events or behaviors, often based on past experiences or societal norms.

Credential Inflation

Describes the increasing demand for higher educational degrees or qualifications for jobs that previously required less education.