Which of the following is not empirically true when formulating capital structure policy?
A)Most corporations have low debt-asset ratios.
B)Some firms use no debt.
C)Debt levels across industries vary widely.
D)There are no differences in capital structure across different industries.
E)Debt ratios in all countries are considerably less than 100%.

Question

Quizplus · Accepted Answer

It is empirically true that debt levels vary widely across industries, so choice D is not accurate. Choices A, B, C, and E are all empirically true.

Which of the Following Is Not Empirically True When Formulating