Which one of the following is not empirically correct?
A)Some firms use no debt.
B)The capital structure of a firm can vary significantly over time.
C)Capital structures are fairly constant across industries.
D)Debt levels across industries vary widely.
E)Debt ratios in most countries are considerably less than 100 percent.

Question

Quizplus · Accepted Answer

Capital structures can vary significantly across industries due to differences in financing needs, risk profiles, and access to capital markets. It is not empirically correct to suggest that capital structures are fairly constant across industries.

Which One of the Following Is Not Empirically Correct