The capital structure is industry specific and not firm specific. That is, all firms in a particular industry will have the same capital structure.

Question

Quizplus · Accepted Answer

The capital structure can vary among firms even within the same industry. Factors such as the size of the firm, its growth prospects, its credit rating, and the nature of its assets and liabilities can influence its capital structure decisions.

The Capital Structure Is Industry Specific and Not Firm Specific