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Basic Question 5 of 15
Which of the following statements is false?
B. Firms in the electric utility industry use a great deal of debt financing.
C. Firms in the bio-tech industry tend to use a tremendous amount of debt financing.
D. We might expect to see low-risk industries with high levels of debt.
A. Firms within a given industry often tend to have similar capital structures.
B. Firms in the electric utility industry use a great deal of debt financing.
C. Firms in the bio-tech industry tend to use a tremendous amount of debt financing.
D. We might expect to see low-risk industries with high levels of debt.
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I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
Learning Outcome Statements
describe optimal and target capital structures
CFA® 2024 Level I Curriculum, Volume 2, Module 6.