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The Capital Structure of a Company Is One of the Important

Question 34

Multiple Choice

The capital structure of a company is one of the important indicators of performance.Which of the following statements regarding capital structure is incorrect?


A) Debt to equity or shareholders' interest ratios are both measures of capital structure.
B) Capital structure ratios are an indicator of longer term viability and stability.
C) A company with a higher equity ratio is less dependent on external funding.
D) The capital ratios of companies, and industry groupings, are generally similar.

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