Which of the following statements is false?
A) Most of the investment by non-financial companies is generally financed from internal cash flow.
B) Some companies effectively have negative debt/equity ratios because their holdings of cash and marketable securities are greater than their debt.
C) Wald (1999) found that differences in leverage between major industrial countries are moderate.
D) Many studies of capital structure include measures of non-debt tax shields with the expectation that they will be positively related to leverage.
Correct Answer:
Verified
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