Corporations in the U.S.,as compared to other countries,tend to:
A)have a median leverage ratio that's equal to the average international median leverage ratio.
B)underutilize debt.
C)rely less on equity financing than they should.
D)have extremely high debt-equity ratios.
E)have relatively high leverage ratios due to the tax benefits gained.

Question

Quizplus · Accepted Answer

Corporations in the U.S. tend to underutilize debt, meaning they rely less on debt financing compared to other countries. This is due to various reasons such as stronger investor protections and a more developed equity market in the U.S.