QUESTION

11. Which of the following statements is CORRECT? A) Wide variations in capital structures exist both between industri

Category: Business
Subject: Finance
Due Date: 01/27/2016
Question Asked: 2016-01-27 18:20:22

$1.00

Asked by:

User: LightspeedLearning
Rating: No Rating (0)
Earnings: $1.10
Questions: 369
Tutorials: 369
Send me a message

11.  Which of the following statements is CORRECT?

A) 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.

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) Generally, debt-to-total-assets ratios do not vary much among different industries, 

although they do vary among firms within a given industry.

D) Since most stocks sell at or very close to their book values, book value capital structures 

are typically adequate for use in estimating firms' costs of capital.

E) Airline companies tend to have very volatile earnings, and as a result they generally have 

high target debt-to-equity ratios.


AVAILABLE ANSWERS

Click here to buy...
Join Us
Or


Purchase with additional $0.50
as a Guest
$ 1.00

11. Which of the following statements is CORRECT? A) Wide variations in capital structures exist both between industri

This answer hasn't been purchased yet.
Posted on 2016-01-27 18:20:22

Posted by:

User: LightspeedLearning
Rating: No Rating (0)
earnings: $1.10
Questions: 369
Tutorials: 369
Send me a message

Preview:

...hough they do vary among firms within a given industry.D) Since most stocks sell at or very close to their book values, book value capital structures are typically adequat...

The full tutorial is about 136 words long.