Which of the following statements concerning the capital structures of Japanese companies is correct?
A. Companies in Japan are financed nearly entirely with equity.
B. Companies in Japan use greater proportions of debt than companies in most other countries.
C. The capital structures of most Japanese companies contain little debt that is issued in Japan; that is, most firms are financed with foreign debt.
D. Debt monitoring costs are extremely high in Japan.
E. Companies in Japan raise most of their funds using publicly-issued corporate bonds.
Answer: B
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