Firms in which one of the following industries are most apt to have the highest debt ratios?

Question

Quizplus · Accepted Answer

Railroad companies are capital intensive, meaning they require large investments in fixed assets such as railroads, locomotives, and other infrastructure. Due to the nature of their business, they have relatively stable cash flows, which makes them attractive borrowers for debt. Therefore, they are more likely to have higher debt ratios than other industries such as software, communications equipment, or integrated oil and gas.

Firms in Which One of the Following Industries Are Most