Studies Have Found That Firms with Large Investments in Tangible

Multiple Choice

Studies have found that firms with large investments in tangible assets tend to have:

A) higher financial distress costs than firms with comparable investments in intangible assets.
B) zero debt.
C) higher target debt-equity ratios than firms that primarily invest in intangible assets.
D) the highest financial distress costs of any firm per dollar of debt.
E) the same capital structure as firms that specialize in intangible asset investments.