Which of the following statements is TRUE? A) The lower a firm’s debt

Which of the following statements is TRUE?

A) The lower a firm’s debt-to-equity ratio, the LESS room it has to take on additional debt.
B) More stable industries, such as utilities, tend to have LOWER debt-to-equity ratios.
C) Leverage ratios focus on INCOME STATEMENT items.
D) There is NO GENERAL BENCHMARK FOR LEVERAGE RATIOS, and ideal values vary from industry to industry.

ANSWER

D