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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Definitions:

Difference Threshold

The smallest change in stimulation that is detectable by a person at least half the time, referred to as the just noticeable difference (JND).

Separation Threshold

The minimum distance or difference in stimuli required to distinguish between two separate entities or experiences.

Difference Threshold

The minimal detectable difference between two stimuli required for detection that they are not the same, also known as the just noticeable difference (JND).

Separation Threshold

The minimum distance or difference between stimuli detectable by the sensory system.