Which of the Following Statements Is Correct

question 10

Multiple Choice

Which of the following statements is correct?

• A)Generally, debt-to-total-assets ratios do not vary much among different industries, although they do vary among firms within a given industry.
• B)Electric utilities generally have very high common equity ratios because their revenues are more volatile than those of firms in most other industries.
• C)Prescription drug companies generally have high debt-to-equity ratios because their earnings are very stable, and therefore they can cover the high interest costs associated with high debt levels.
• D)Wide variations in capital structures exist both between industries and among individual firms within given industries. These differences are caused by differing business risks and also managerial attitudes.

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Definitions:

Genetic Disorders

Conditions caused by abnormalities in an individual's DNA, which can result in physical, mental, or metabolic anomalies.

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A condition affecting the blood's ability to function properly, which can include diseases like anemia or hemophilia.

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A genetic blood disorder caused by a recessive gene where red blood cells assume an abnormal, rigid, sickle shape, causing blockage in blood flow and pain.