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CFA Level 1 Exam
3959 Questions
Question No. 1
Which of the following statements is/are true about observed capital structures?
I. Firms with higher stability in sales tend to use higher debt ratios.
II. Firms with a higher ratio of general-purpose assets to special-purpose assets tend to have higher debt ratios.
III. Young firms with higher growth rates tend to have higher debt ratios.
III. Young firms with higher growth rates tend to have higher debt ratios.
Choose the correct option from the given list.
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