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Basic Question 5 of 15

Which of the following statements is false?

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 passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz

Tamara Schultz

Learning Outcome Statements

describe optimal and target capital structures

CFA® 2025 Level I Curriculum, Volume 2, Module 6.