In general,the capital structures of U.S.firms:
A)tend to overweight debt in relation to equity.
B)employ less debt when the firm requires large amounts of tangible assets.
C)are constant over time on a firm-by-firm basis.
D)tend to be those that maximize the use of each firm's available tax shelters.
E)vary significantly across industries.

Question

Quizplus · Accepted Answer

The capital structures of U.S. firms vary significantly across industries, as some industries require more debt financing (such as utilities) while others rely more on equity financing (such as technology firms). The capital structure decision also depends on other factors such as the firm's size, growth prospects, and financial flexibility.

In General,the Capital Structures of U.S.firms