- CFA Exams
- CFA Level I Exam
- Topic 3. Corporate Issuers
- Learning Module 6. Capital Structure
- Subject 4. Optimal Capital Structure
CFA Practice Question
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.
Correct Answer: C
Firms in the bio-tech industry tend to use a very little debt financing.
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